Obama taking multilateral approach on China

The Obama administration will take a multinational approach when confronting China about its possible currency manipulation, Ways and Means Chairman Sandy Levin (D-Mich.) told an audience at the National Press Club. 

"When Secretary Geithner and I met about 2 weeks ago we discussed this at length and he made it clear that that was how they were going to go," Levin said. "It's clear to me that this administration is [trying] to help bring about change and they're going to try and use the multinational approach." 

The White House will work with the G20 in trying to persuade China to raise its currency to a realistic level.

Levin surmised that China could have undervalued its currency anywhere between 15 percent to 40 percent. Doing so allows China to offer extremely inexpensive exports and gain an upper hand on the international market. 

The G20 is expected to work through the summer in addressing China's currency issue. If it fails to correct the matter, Levin said Congress would act to fix the problem.

"If it [the G20] doesn't work, the U.S. will act," he said. "I have no doubt about it."