Senators urge U.S. to combat China currency policy
Reuters – WASHINGTON – A bipartisan group of 15 U.S. senators on Thursday insisted China's currency practices are effectively a subsidy and urged Commerce Secretary Gary Locke to consider action against Chinese imports.
"There can be no doubt that China's policy of large-scale intervention in the exchange markets and the significant undervaluation of its currency acts as a subsidy to Chinese exports," the senators said in a letter that increased pressure on President Barack Obama to deal with the currency concern.
U.S. lawmakers and manufacturers have complained for years that China undervalues its currency by as much as 40 percent to give its companies an unfair trade advantage.
Beijing bristles at the suggestion it is "manipulating" its currency, known as the renminbi or yuan. It is likely to react strongly to any U.S. action based on that conclusion.
Obama accused China of manipulating its currency during his 2008 election campaign.
