U.S. Senate May RaiseTariffs on Chinese Exports

    February 3, 2005

The U.S. senate may increase tariffs on Chinese exports if the country doesn’t increase its currency’s value to take pressure off of the U.S. dollar.

The Senate is introducing a bill that would give China a six-month deadline to change the value of the yuan. The bill is supported by both republicans and democrats.

“It will be introduced hopefully tomorrow or in the coming days and would require China to abide by international trade agreements and stop manipulating the value of its currency,” said Israel Klein, spokesman for Senator Charles Schumer.

The bill would give China 180 days to revalue its currency or deal with 27.5% tariff on all Chinese exports entering the U.S.

Foreign Ministry spokesman Kong Quan doesn’t feel that this “threat” from the Senate is the right way to deal with the situation.

“We believe the currency issue in the final analysis should be conducive to the economic development of a country,” he said.

“We believe China’s stable, sustained and rapid development is not only conducive to China itself but is also mutually beneficial to trade cooperation between China and Asia and all countries in the world.”

The issue will probably be discussed at a meeting in London on Friday between finance ministers from the Group of Seven Industrialized nations.

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