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The Chinese regime is criticizing a US bill. The controversial bill may force China to raise the value of its currency. The US Senate passed the bill yesterday. But it still has to go through the House of Representatives. Chinese officials and state-run media say the bill would hurt relations between the two countries.
The Chinese regime accused the United States of trade protectionism, referring to the US bill aimed at forcing the yuan to appreciate.
China's Vice Foreign Minister Cui Tiankai reiterated China's opposition to the bill and likened it to the 1930 Smoot-Hawley Act, which he said worsened the Great Depression by invoking retaliatory measures from other countries.
[Cui Tiankai, Chinese Vice Foreign Minister]:
"Should the proposed legislation become law the only result would be a trade war between China and the U.S. and that would be a lose-lose situation for both sides."
Unlike other countries that allow their currencies to fluctuate, the Chinese regime controls the yuan by setting its value and intervening in local trading.
Many economists have said the intervention gives Chinese exporters an unfair advantage over global competitors. Nobel Prize winning economist Paul Krugman last year called the regime's currency policy 'predatory.'
The bill calls for tariffs on imports from countries that deliberately undervalue their currencies.
Ben Yang