Bush's China Policy Leaves American Workers Behind

Today, President Bush will meet with Chinese President Hu Jintao at the White House to discuss a number of issues. Since taking office in 2001, President Bush's policy toward China has been a failure on the economic front. In that time, America's trade deficit with China has ballooned to $200 billion, the largest bilateral trade deficit in American history. Bush's Treasury Department has failed to fight China's currency manipulation, and because of Washington Republicans' reckless fiscal policies, China is now the second largest holder of U.S. debt, with more than $260 billion in U.S. Treasury securities. President Bush has also failed to enforce fair trade laws, putting American firms and workers at an unfair disadvantage.

"Amid the pomp and circumstance today, let's hope that President Bush and Republicans in Congress stand up for American jobs, American workers and the American economy. It's time to put the needs of hard working Americans ahead of politics," said DNC communications director Karen Finney. "Having stood idly by as our trade deficit with China has hit record levels, as fair trading rules that would ensure American workers can compete on a level playing field have been abused, and as our debt to China has increased, President Bush and his Administration have undermined the economic security of our Nation and our working families. Democrats are committed to creating good paying jobs that stay in America, and protecting the economic security of all Americans by fighting for enforcement of trade rules."

Bush: American Workers Can Compete With "Anybody, Anytime, Anywhere So Long As The Rules Are Fair." "Lowering trade barriers to the sale of our goods and services helps provide a level playing field for American workers and farmers and ranchers. And that means more jobs and opportunities, because our workers and ranchers and farmers can compete with anybody, anytime, anywhere, so long as the rules are fair. . ." [President Bush, 4/18/06]

Trade Deficit with China Resulting In Loss of American Jobs; Administration Criticized For Failure To Enforce Trade Laws And Stop Chinese Currency Manipulation. U.S. manufacturers contend that China's yuan is undervalued by as much as 15 to 40 percent, giving Chinese goods an unfair advantage that has cost America nearly 3 million manufacturing jobs since 2000. The Bush Administration has been criticized by members of Congress for failing to effectively address China's continued manipulation of its currency and for failing to take new action in the WTO or launching new efforts to enforce trade laws. [Knight Ridder, 4/13/06; US News and World Report, 4/24/06; The Hollywood Reporter, 2/15/06]

US Trade Deficit With China Soared to $200 Billion. At the end of 2000, when President Bush took office, America's trade deficit with China was $83 billion. Last year, the trade deficit with China rose to $202 billion. [Knight Ridder, 4/13/06; US News and World Report, 4/24/06; Census Foreign Trade Statistics, www.census.gov]

China is the Second Largest Holder of US Debt; Amount of US Debt Increased by 120 Percent Since Bush Took Office. Since Bush took office, the amount of U.S. debt owned by foreigners has increased 120%, from approximately $1 trillion in January 2001 to approximately $2.2 trillion in February 2006. It took 42 American Presidents and 224 years to build up that amount ($1 trillion) of foreign-held debt. As of February of 2006, China is the second largest holder of US debt, with $265.2 billion in Treasury securities. [Treasury Department, 4/17/06