Senators urge U.S. to combat China currency policy

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.

Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.