Skip to Main Navigation

The Buffalo News

Web Search
by YAHOO! SEARCH

Bill aims to pressure China

Published:March 17, 2010, 6:33 AM

Font Size:
  • E-mail
  • Share
  • Print

Key Links

Updated: August 21, 2010, 5:12 AM

WASHINGTON — A coalition of senators from both parties banded together Tuesday to offer a bill that’s aimed at pressuring China to stop manipulating its currency — a move that could boost manufacturing in places like Buffalo.

The bill would impose stiff new penalties on countries that artificially hold down the value of their currency, as China is widely seen as having done. The senators said China’s policy has made Chinese products far cheaper in the U. S. than they otherwise would have been, thereby reducing sales of competing American products.

The legislation also includes tariffs and a ban on U. S. government contracts going to companies located in countries that manipulate their currency.

“We are sending a message to the Chinese government: If you refuse to play by the same rules as everyone else, we will force you to,” said Sen. Charles E. Schumer. D-N. Y., one of the measure’s lead sponsors.

Schumer and Sen. Lindsey Graham, R-S. C., sent that message once before, introducing a similar measure in 2005 that passed the Senate with 67 votes before stalling in the House.

The lawmakers credited that effort with pressuring China to briefly stop artificially controlling its currency, the yuan, or renminbi. China allowed the yuan to float — and thereby increase in value by 21 percent, between 2005 and 2008, Graham said, though the exchange rate has remained frozen since then.

The senators said they were trying to find a way to get their legislation attached to a must-pass bill sometime in the next few weeks. They predicted the bill would be popular in the House as well at a time when the unemployment rate hovers near 10 percent.

White House spokesman Robert Gibbs refused to comment on the legislation, but Graham noted that President Obama has been decidedly less tough on China than he was during his 2008 campaign.

“When it comes to China, we campaign one way and govern another,” Graham said. “That has to stop.”

The bill could put the Obama administration in a delicate position because China is one of the main financiers of the nation’s record budget deficits.

Earlier this week, Chinese Premier Wen Jiabao said there was no reason for China to change its currency policy because he doesn’t “think the renminbi is undervalued.” U. S. arguments on the exchange rate are “groundless,” Ministry of Commerce spokesman Yao Jian said Tuesday at a briefing in Beijing.

Comments

There are no comments on this story.

Strictly Business Blog

Business Updates

Business Wire

The Feed / What’s Happening Now

Latest Updates
Most Commented
Most Viewed
City & Region

What to do with an empty hospital?

Jerry Sullivan

Hall vote deepest cut for Reed

City & Region

Catholic institutions here cover birth control

Sabres & NHL

Sabres offense on a mini hot streak

City & Region

'Biggest Loser' creates a big win

East Side

Robbery attempt goes wrong as man ends up shot to death

Hamburg

Blasdell youth charged in crash that killed 14-year-old girl

Courts

Man who drove into fire hall last summer is arraigned

City of Buffalo

Unions rejected on wage freeze challenge

Business

2 ex-Baum attorneys open law firm in Amherst

Newsroom Tips

Have a news tip you think The Buffalo News should investigate?

Call The News tip line at 849-4475 or email us at investigations@buffnews.com.

All calls and emails will be kept confidential.

Buffalo Marketplace

Marketplace videos

Watch the latest offers, products and services from our advertisers.

Browse our print ads

It's the ultimate advantage for Buffalo consumers. Never miss another ad again!

Buffalo Savers: coupons

Buffalo coupons at your fingertips.
Just click and print. It's Easy!

close

Browse our print adsclose

Special Sections

Buffalo Saversclose

Local coupons

Featured coupon