U.S. Groups Urge Congress Reject China Currency Bill
A coalition of 45 U.S. business groups have rejected Congressional efforts to pressure China to raise the yuan rate. From Reuters:
“We agree that China needs a yuan exchange rate that responds to trade flows and that China should move steadily toward a market-determined exchange rate,” the U.S.-China Business Council and other groups said in a letter to every voting member of Congress.
But passing legislation threatening to slap tariffs on some Chinese goods “would be counterproductive not only to the goals related to China’s exchange rate that we all share, but also to our nation’s broader goals of addressing the many and growing challenges that we face in China,” the groups said.
Those include inadequate protection of intellectual property, restrictions on market access, the need for financial services liberalization, restrictions on the export of commodities such as rare earths, discriminatory indigenous innovation and other industrial policies, the groups said.