The New York Times reports on a bill before the U.S. Senate that would impose some tariffs on China in response to their unwillingness to revalue their currency:
The Chinese objections came as the Senate began debate on the bill, which would require the Treasury Department to determine whether China is manipulating its currency and then order the Commerce Department to impose tariffs on certain Chinese goods.
Ma Zhaoxu, a spokesman for the Chinese Foreign Ministry, said the bill “seriously violates rules of the World Trade Organization and obstructs China-U.S. trade ties.” The statement, reported by Xinhua, China’s official news agency, urged senators to “rationally understand Sino-U.S. trade cooperation, which is mutually beneficial in nature, and stop pressuring China through domestic lawmaking.”
The statement did not specify what steps, if any, China might take if the legislation were to pass. But Mr. Ma said the bill would “further escalate the exchange rate issue by adopting protectionist measures with an excuse of ‘currency imbalance.’ ”
See also: “China Currency Bill Runs Into Republican Opposition in Congress” from Business Week and “U.S. currency exchange rate reform bill does good to no one” from Xinhua. Read more about the battle over China’s currency evaluation via CDT.