Congress addresses Chinese currency manipulation
Friday, September 30, 2011
WASHINGTON (AP) -- After years of trying, Congress is taking another stab at punishing China for what many see as currency manipulation to keep its exports to the United States cheap and make American exports more expensive.
On Monday, the Senate will take up legislation to impose higher U.S. duties on Chinese products to offset the perceived advantage China gets from undervaluing its currency.
Supporters say the bill would narrow the trade deficit and bring home jobs that have been lost to Chinese producers.
But the legislation faces stiff opposition from American-based multinational corporations. And the White House doesn't care for it. The Obama administration -- like the Bush administration before it -- doesn't want a trade war with China and says quiet diplomacy is the best way to change Chinese policy.