US Senate Preparing To Up the Heat on China

October 11 00:00 2011

New York, October 11 (RainbowNewsLine.com) – The US Senate is currently voting on a bill that may put China’s business interests in jeopardy. However, the American point of view is that they are just correcting what they deem as China’s unfair advantage in World Trade.

Many American senators have alleged that China is manipulating the currency markets to keep its currency at artificially low levels and is boosting the exports to US. Americans are able to purchase more Chinese goods for every dollar and are therefore inclined to make purchases from China killing the local industry.

To make matters worse. Chinese government has been actively involved in subsidizing many of these organizations to boost Chinese exports. The US senate is demanding that China should come clean on the issue in front of the World Trade Organization. Actually, the Senate is against a whole group of countries that indulge in currency manipulation, China just happens to be the most prominent.

The Senate was supposed to vote in on this bill on Thursday. Now, the date has been extended till the forthcoming Tuesday at the earliest. If the bill is passed the US government will levy tariffs and duties that will nullify China’s currency advantage and make Chinese goods more expensive once again.

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