Sunday, September 12, 2010

US-China Trade Tensions Seen Boiling Over If Congress Acts

WASHINGTON (Dow Jones)--U.S. lawmakers could soon replace feisty rhetoric with action on China and its currency policy.

Frustrated members of Congress may vote in the coming weeks on legislation penalizing Chinese imports for Beijing's artificially low currency. Anger over the artificially low yuan is a long-simmering issue on Capitol Hill, but is becoming more pronounced. Stoked by a heated U.S. election cycle and ailing economy, some insiders predict the China penalty bills will pass at least the House and possibly the Senate.

"Congress will move with some expediency," said Charles Freeman, a former assistant U.S. Trade Representative and a top ...

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