If China continues to hold down its currency, the country will import excess US liquidity, overheat, and lose wage competitiveness. This is the default cure if all else fails Photo: REUTERS Risk Of Trade War Rises As Key US Committee Backs Tariffs On China -- The Telegraph
The risk of a trade war between the US and China has increased after a key Congressional committee backed a bill to allow US companies to seek tariffs on Chinese imports.
The adoption of the measure by the Ways and Means Committee on Friday means it will now be voted on by the House of Representatives on Wednesday.
"China's exchange-rate policy has a major impact on American businesses, and Americans jobs, which is what this is all about," said Sander Levin, a Democrat from Michigan and chairman of the committee.
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More News On U.S. - China Trade Differences
US and China battle over the trade policy that dare not speak its name -- The Telegraph
China targeted in bill on currency manipulation -- AP
China Currency Bill Advances -- Wall Street Journal
US Congress moves to punish China on currency -- AFP
Summary Box: China targeted in currency bill -- AP
Tensions rise in Japan over China rift -- Wall Street Journal
China-Japan trade war looms -- CTV
China's trade interests temper its regional rivalries -- L.A. Times
Chinese think tank warns US it will emerge as loser in trade war -- The Telegraph
Beware starting trade war, China economist tells U.S. -- Reuters
Why some economists see a looming US-China trade war -- Christian Science Monitor
No One Wins In Trade War With Chinese -- Robert Samuelson, Investors Business Daily
China is unwilling to let the value of the yuan "float" and be determined though the normal forces of trade and currency trading. If the American government does plan to make a stand, it has no better time that to do it now to strengthen its level of exports and use that to help the US economy recover.
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