US Passes Bill Against China Despite Warnings

October 17 00:00 2011

New York, October 17 ( – The US Senate has shown complete disregard for the warning issued by China to not pass the bill against the Chinese Yuan. The US Senate voted in for the bill with a convincing majority. This has been on the back of concerns that China is manipulating the currency markets to gain an unfair edge over trade partners like the US, who are paying dearly for it.

The Chinese government has issued a statement against the Senate’s intention of passing this legislation. The Chinese stated that the Renminbi has appreciated 10% against the dollar but the Chinese exports are still going strong. They said that the Chinese government has not indulged in any currency manipulation and these are merely populist attempts by the US to appease the unemployed Americans and to target competitive Chinese goods. Meanwhile Tim Geithner stated that the appreciation of the Renminbi is miniscule given the fact that it has been undervalued for a long time.

The world now waits to see whether China will come good on its word and start a trade war with the US. The Chinese government has the largest holding of US treasuries and some analysts fear it as being capable of collapsing the dollar.