Senators Propose Bill Against Chinese Currency Manipulation

Posted September 22nd, 2011 at 6:46 pm (UTC-5)
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A bipartisan group of U.S. Senators introduced a bill Thursday taking action against China for undervaluing its currency, the yuan.

One of the sponsors, Democrat Sherrod Brown of Ohio, calls it “cheating” when China and others manipulate their currency and keep prices of their exports artificially low on world markets.

The Senate bill would require the U.S. Commerce Department to investigate if a country is undervaluing its currency, which would be regarded as a government subsidy under U.S. law. Exports from those countries would then be subject to possible tariffs.

U.S. business groups oppose the Senate bill. They say it would not give China any incentive to change its policies and could cause it to retaliate against U.S. goods.

Senate sponsors predict overwhelming passage when they bring the bill to a vote next month. But it is expected to face opposition in the Republican-led House of Representatives.

China denies currency manipulation and says it is committed to letting the yuan naturally rise or fall on global markets.