Tuesday, April 13, 2010

US Congress must keep pressing China on yuan: Senator

US Congress must keep pressing China on yuan: Senator; AFP

The US Congress must keep up pressure on China to revalue its currency despite Beijing's apparent new willingness to seek fresh sanctions on Iran, a key US Senator said Tuesday.

"My view is that there should not be a trade-off," said Democratic Senator Chuck Schumer of New York, a key author of legislation to punish China for its alleged currency manipulation, blamed here for lost US jobs.

Schumer had been asked whether US lawmakers should back off efforts to pile pressure on China over the yuan because of Beijing's apparent readiness to drop its opposition to new sanctions on Iran over Tehran's suspect nuclear program.

"To me it shouldn't, because to me, I mean, Iran is very, very important, but so are American jobs and American wealth, and because China manipulates its currency, we lose jobs, wealth flows out of the country daily," he said.

Asked about the timing of possible Senate action on his legislative proposal, Schumer replied: "We'd like to move quickly, we're fed up. And you know, talks, we've been through those."

"Every time there's pressure, the Chinese then sit down and talk, the Chinese government sits down and talks, and comes up with either nothing or very little," Schumer told reporters.

International critics say that China keeps the rate of its yuan artificially low against other foreign currencies to boost exports.

But China defends its exchange rate policy as necessary for the survival of Chinese manufacturers and to support jobs growth.

Speculation mounted last week that China was preparing to alter its exchange rate policy and allow for the yuan to appreciate, after US Treasury Secretary Timothy Geithner made a hastily arranged visit to Beijing. ...

Read the rest here.

Comment: Schumer, along with the band-o-folly called the US Senate, continue to muck up the international scene by playing the role of "mini-president."

Chuck Schumer, one of 100 reasons to repeal the 17th Amendment.

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