Politics & Economics: House Leaders to Push Tariffs on China Exports; Trade Law Could Be Adjusted To Apply to Beijing Subsidies; Japan Currency May Be Next
WASHINGTON -- Leading House Democrats, after pulling the Bush administration behind the idea of incorporating labor rights into trade deals, are upping the ante further in the trade debate: by pushing the White House to take a tougher line toward China.</br></br>A hearing scheduled today by the House Ways and Means Committee is expected to lay the groundwork for action on legislation that would bring China under U.S. laws that use tariffs to punish countries that unfairly subsidize their exports.</br></br>The move goes beyond the strategy stressed by the Bush administration in dealing with such subsidies. The administration has been trying to work through the World Trade Organization in Geneva, lodging a WTO complaint last week alleging Beijing's support for Chinese companies is harmful to U.S. makers of everything from computer products to steel.</br></br>The emerging legislation would open a second front to pressure Beijing and underscores the determination of congressional Democrats -- who won a legislative majority in November's election partly on an antiglobalization agenda -- to bring a more-activist tone to U.S. trade policy.</br></br>"What the administration needs to accept is, there is now a new majority, and there is now a need for new policies," said Michigan Democrat Sander Levin, chairman of the House Ways and Means trade subcommittee. The session will focus on subsidy complaints, as well as China's alleged failure to enforce intellectual-property rights.