The United States Senate is deciding on new legislation calling for the Chinese regime to stop undervaluing the yuan. Many US economists and lawmakers believe the regime is purposefully keeping the yuan low against the dollar. They say it’s part of a strategy to give Chinese companies an unfair price advantage in international trade.
This isn’t the first time US lawmakers have threatened legislation against China’s monetary policies. But bills either fail to make it through the House of Representatives, or are shot down in the Senate.
Senate Majority Leader Harry Reid is behind the latest push for a currency bill. It comes against the backdrop of staggeringly high US unemployment and a massive trade deficit with China, which could top the $273-billion record from last year.