Here's more on China currency issues, from Mark Drajem of Bloomberg:
Aluminum-product makers filed a lawsuit to force the U.S. Commerce Department to levy tariffs on Chinese imports, countering the effect of a currency the companies deem to be undervalued.
In a case at the Court of International Trade in New York, the makers of products used in door frames, gutters and solar- power equipment said earlier rulings by the Commerce Department to turn down their complaint violates the law.
“Chinese producers and exporters of aluminum extrusions received countervailable subsidies resulting from currency undervaluation,” the Aluminum Extrusions Fair Trade Committee said in its June 24 court filing.
In several decisions, the Commerce Department in the Obama and Bush administrations rejected requests by U.S. companies for so-called countervailing duties on imports from China to compensate for the weak currency. A low-priced currency makes exports of a nation cheaper.
ADDED: A reader emails to say that the original post title, "Does U.S. CVD Law Require that Currency Undervaluation be Considered an Export Subsidy?," was misleading, as the appeal concerns whether DOC was obligated to investigate the issue, not whether it was obligated to countervail. I have changed the title to a more general statement of the issues.
