| Good luck with that, Bambi ... |
"I don't think just jawboning will be the approach of this administration," said Rep. Sander Levin, a Democrat who chairs a key trade subcommittee in the House of Representatives. Asked if he thought the Obama administration, which takes over next Tuesday, could bring a WTO case, he said, "I think it will look at all options, including that, including working through the IMF, including looking at present legislation."
"I think they will be much more determined to see things change" than the Bush administration has been, the Michigan lawmaker told reporters. He chairs the trade subcommittee of the House Ways and Means Committee.
U.S. lawmakers and manufacturers have complained for years that China is deliberately undervaluing its currency to gain an unfair advantage in international trade although U.S. consumers have benefited from an influx of cheap Chinese goods.
The Bush administration established a high-level economic dialogue to press Beijing on that and other economic concerns, but stopped short of stronger action.
| Like what? A trade war? Just what we need in a global recession. Sanctions? Ditto. More talk to sound tough while doing nothing? Ah-hah ... |
Levin said he would press the Obama administration to do so when it issues the next report, which is due in April. "We have to address the currency issue. I think the financial crisis makes clear how important this issue is," he said.
During last year's election campaign, Obama said China's "manipulation of its currency's value" was a big reason for the huge U.S. trade deficit with China, which reached a record $256.3 billion in 2007.
That has raised expectations that he will take a tougher line on currency than outgoing President George W. Bush.
Chinese Premier Wen Jiabao told former U.S. President Jimmy Carter earlier this week that the global financial crisis made it critical the two countries work together. "We must strengthen mutual trust and cooperation and pass through the difficulties together," Wen said, according to a report on the Chinese Foreign Ministry website.