WASHINGTON D.C. – Congressman Charles Rangel and 187 members of both the U.S. House and Senate – including all the Democratic members of the Ways and Means Committee – sent a letter to President Obama urging his Administration to use all existing authority to address China’s predatory policies in auto parts. The Administration has already taken multiple steps in recent weeks to rein in China’s abusive trade practices, including establishing a new trade unit, the Interagency Trade Enforcement Center, to promote a more coordinated, effective response. Also, this week the Administration filed a complaint with the World Trade Organization regarding China’s rare earth materials policy.

“As we work to rebuild our economy it is crucial that we hold China accountable,” said Rangel. “We must look after American businesses and ensure that they have a fair shot to compete in a global economy.”

China’s predatory auto parts policies are having a particularly damaging affect on U.S. jobs, as noted in a January report that found that 1.6 million U.S. jobs could be at risk if China’s practices are not curtailed.

“To level the playing field for U.S manufacturers and their workers, we must develop and implement a much more assertive and comprehensive strategy,” the Members wrote in the letter. “Your announcement of the Interagency Trade Enforcement Center to promote a more coordinated, effective response to China’s unfair trade practices is a major step toward such strategy. Addressing Chinese predatory policies in auto parts should be one of the Enforcement Center’s first and highest priorities.”

Added Rangel: “We cannot sit idly while Americans are losing jobs at no fault of their own because of unfair trading policies by China. I have complete trust in President Obama that he will address this issue in his continued efforts to create jobs and improve our economy.”

A PDF copy of the letter is here. Full text is below:

March 16, 2012

President Barack Obama
The White House
Washington, D.C.

Dear Mr. President:

We are writing to express serious concern about China’s unfair practices in the auto parts sector, and to encourage your Administration to use all existing authority under the law to preserve and protect U.S. production and jobs.

Recently released reports have highlighted the vast array of policies China’s government uses to advantage its producers, such as limiting our exports to their market, subsidizing their exports to ours, and assisting their producers to the disadvantage of ours. The Chinese Government also imposes restraints on the export of key raw materials needed for the production of parts. In that regard, the United States recently won a major decision challenging some of those restraints at the World Trade Organization. We must build on this victory and begin addressing other restraints on materials, including those critical to the production of autos and auto parts. China also coerces U.S. companies in China to transfer their technologies to Chinese partners.

These tactics are working. Chinese auto parts exports are rapidly growing and have increased almost 900 percent since 2000. An unfortunate result of China’s predatory and protectionist policies in the auto parts sector has been to begin to sever the traditional link between auto assemblers, parts producers, and aftermarket producers. Thus, while our nation’s auto producers are recovering, the auto parts sector faces serious challenges.

We cannot wait until further damage is done. China has signaled its commitment to continue this approach in its recently released twelfth Five-Year Plan and other government directives. To level the playing field for U.S manufacturers and their workers, we must develop and implement a much more assertive and comprehensive strategy. Your announcement of the Interagency Trade Enforcement Center to promote a more coordinated, effective response to China’s unfair trade practices is a major step toward such strategy. Addressing Chinese predatory policies in auto parts should be one of the Enforcement Center’s first and highest priorities.

Seventy-five percent of the jobs in the automotive sector are in auto parts, and these jobs are at risk in every state in the nation. China has virtually closed its market to our auto parts exports and continues to take actions to further limit access. Given its importance, the Administration’s vigilance in addressing China’s harmful policies now, while we can still change this one-way street in trade, is essential. American companies and workers can compete anywhere when the playing field is level.