OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C. 20508
USTR Press Releases are available on the USTR website at www.ustr.gov

Statement of Neena Moorjani
USTR Spokesperson
November 12, 2004

Regarding a Section 301 Petition on China's Currency Regime

"On September 30, we received another petition under Section 301 of the
Trade Act of 1974 on the issue of China's currency.

"The petition was similar to the petition filed on September 9 by labor
unions and others.

"As we have previously made clear, the Administration believes China
must move faster to adopt a flexible, market-based exchange rate and we
have acted aggressively to persuade the Chinese government to undertake
the complex transition toward that goal. Working closely with U.S.
Treasury officials, China, according to Governor Zhou of China's People
Bank, has made this a top priority and has made a series of policy moves
to liberalize rules governing foreign exchange transactions, moved to
strengthen and develop the finance sector, adjusted interest rates, and
taken other steps toward increasing flexibility in financial
policymaking; these are clear signs that the Administration's efforts
are paying dividends.

"A Section 301 action would not assist in these efforts, and indeed
could be more damaging than helpful at this time. We therefore must
decline to accept the course of action recommended through this latest
petition.

"Under the leadership of Secretary Snow and the Treasury, we will
continue to work with Members of Congress on this issue as we seek to
achieve our common goal: a more flexible, market-based exchange rate for
China's currency and a level playing field for American businesses,
workers, farmers and service providers."