US senators press China on yuan

Bill gives government more tools to counter alleged Chinese currency manipulation.

    Critics say China undervalues the yuan by up to
    40 per cent for unfair trade advantages [EPA]
    It is among several introduced this year aimed at China, even though the new measure does not mention the country by name, and will also allow the US to take similar measures against other alleged currency manipulators.
     
    Last year a bill in the senate proposed the imposition of an across-the-board tariff on Chinese imports.
     
    'Fundamentally misaligned'
     
    China critics say the government undervalues the yuan by up to 40 per cent for unfair trade advantages, costing thousands of American manufacturing jobs.
     
    The new law requires countries with "fundamentally misaligned" currencies to be identified before they are punished, such as initiating a World Trade Organisation dispute if the misalignment continues for a year.
     
    The bill defines misaligned as government intervention in the markets to alter the value of the currency, or if the government imposes currency controls, among other criteria.
     
    Charles Grassley, a Republican who co-sponsored the bill, said the measure would apply "to any trading partner with [an] out-of-whack currency".
     
    He said it was "a velvet glove with a steel fist inside" because many of the bill's punitive measures will only kick in after six months or a year.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    'We will cut your throats': The anatomy of Greece's lynch mobs

    The brutality of Greece's racist lynch mobs

    With anti-migrant violence hitting a fever pitch, victims ask why Greek authorities have carried out so few arrests.

    The rise of Pakistan's 'burger' generation

    The rise of Pakistan's 'burger' generation

    How a homegrown burger joint pioneered a food revolution and decades later gave a young, politicised class its identity.

    From Cameroon to US-Mexico border: 'We saw corpses along the way'

    'We saw corpses along the way'

    Kombo Yannick is one of the many African asylum seekers braving the longer Latin America route to the US.