U.S. Textile Industry Applauds Senate Passage Of China Currency Bill

WASHINGTON — October 12, 2011 — The U.S. textile industry applauded the vote, 63-35, by the U.S.
Senate to enact meaningful job creation legislation through the passage of S. 1619, the Currency
Exchange Rate Oversight Reform Act this evening.

NCTO particularly highlighted the tireless leadership of Senators Sherrod Brown (D-OH),
Lindsey Graham (R-SC), Chuck Schumer (D-NY), Richard Burr (R-NC), Kay Hagan (D-NC), Jeff Sessions
(R-AL) and Debbie Stabenow (D-MI). “These Senators have aggressively and tirelessly pursued changes
to U.S. law that would promote manufacturing in our country and hold countries that violate our
laws to gain an unfair advantage accountable,” stated NCTO President Cass Johnson following the
Senate vote.

NCTO Chairman Bill Jasper, CEO of Unifi Inc, said “Studies have clearly shown that Chinese
currency manipulation is a key factor in the loss of millions of textile and manufacturing jobs in
the United States. By imposing penalties if China continues to unfairly manipulate its currency,
this Act will begin the process of bringing jobs back to our country, increasing our exports and
reviving our economy. We urge the House to move quickly to pass it.”

U.S. textile mills have closed one thousand plants in the U.S. over the past ten years as
Chinese imports of textiles and apparel have increased by $32 billion on 489%. 379,000 textile jobs
have been lost. An NCTO analysis released Tuesday showed that Chinese subsidies give Chinese
textile exporters a 35 to 75 percent advantage in the U.S. market.

New research conducted by four leading economists on “The China Syndrome: Local Labor Market
Effects of Import Competition in the United States” shows that cheap Chinese goods actually create
enormous costs to the overall U.S. economy through increased unemployment benefits, lost tax
revenues and other costs. The Economic Policy Institute also released findings this month: the
Growing U.S. Trade Deficit with China Cost 2.8 Million Jobs Between 2001 and 2010. The study
identified China’s persistent undervaluation of the renminbi (RMB) to the U.S. dollar as a key
cause of the record trade deficits and manufacturing job loss with that country.

Posted on October 18, 2011

Source: NCTO