US House panel ratchets up trade tensions with China with approval of currency bill

Telegraph UK/Reuters ^ | 24 September 2010

[Lorianne]

The House of Representatives Ways and Means Committee backed the legislation on a voice vote, clearing the way for the full House to take up the measure next week.

It may never become law, however, as it faces an uncertain future in the Senate.

House Ways and Means Committee Chairman Sander Levin said the bill would give the United States new tools to address China's "currency manipulation" because diplomatic pressure has not yielded satisfactory results.

"China's persistent manipulation is a major distortion in the international marketplace," Mr Levin, a Democrat, said.

He said China's undervalued currency "has a major impact on American workers and therefore American jobs. That's what this is really all about".

Lawmakers have long threatened legislation if China did not take action to increase the value of the yuan, which critics inside and outside Congress say gives Chinese companies an unfair trade advantage.

But Congress, in a fierce election season focused on sluggish US economic growth, is moving closer than ever to passing legislation that would penalise China.

[GonzoGOP]

They need to devalue our currency in order to pay off the debt. But they can't do that as long as we are pegged to the Chinese. They need those Obama Dollars to be like Zimbabwe dollars. China just wants to get paid.

[musicman]

[updatedscreenname]

China is just playing the old elevator operator game.
They will be jerking our chain to get 0 backed into a
corner, then they will ask for and get what they want.