yuanChina denounced a bill passed by the U.S. House of Representatives that aims to push up the value of the Chinese currency.

The bill, which would let U.S. companies petition for duties on Chinese imports to compensate for the impact of the weak yuan, would hurt the global economy if it became law, the Chinese government said Thursday.

"We firmly oppose the U.S. Congress approving such bills," Foreign Ministry spokeswoman Jiang Yu said today in Beijing, Bloomberg News reported. "We urge the U.S. congressmen to be clearly aware of the importance of China-U.S. trade and economic relations, resist protectionism so as to refrain from any damage to the interests of both peoples and people around the world."

The bill passed the House by a vote of 348-79 votes, with support from both Democrats and Republicans.

The Senate will not vote on the bill before the November elections, Senator Charles Schumer (D- NY) said.

The U.S. trade deficit with China hit $25.9 billion in July, up 27% from a year earlier.

China's central bank said yesterday that it will expand flexibility of the yuan. China ended a two-year currency peg in June, but the yuan has appreciated by just 2% since.

Treasury Secretary Timothy Geithner said this appreciation was inadequate.

Economists such as C. Fred Bergsten of the Peterson Institute for International Economics say the yuan may be undervalued by as much as 25%.

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rgreen6524

I am tired of China threatening us, I am tired of the religion of "free trade", I am tired of the idea that we can export our way to prosperity, as soon as an American company opens a market overseas they build a plant and begin producing in that country, and often then export back to the US. Oh, also don't tell me we have to have them to buy our debt. They only do that to keep their Yuan low. The US is still the largest economy in the world, and believe it or not, still the largest manufacturer in the world, but if we do not begin to protect our economy from the likes of China we will not be for long.

September 30 2010 at 11:15 AM Report abuse +3 rate up rate down Reply
gretaschristus

Can someone explain why countries want a weak currency? I just started looking into finance and I don't understand that part.

September 30 2010 at 11:12 AM Report abuse rate up rate down Reply
1 reply to gretaschristus's comment
rgreen6524

For the same reason a store wants to sell for less than the competition. The lower the price of a country's currency the more competitive their exports, it also increases the cost of imports coming in to the country and makes it easier for their domestic manufacturers to compete.

September 30 2010 at 11:31 AM Report abuse +2 rate up rate down Reply
jtmader

We could easily get their attention without a tarrif. If we inspect 10% of the contents of each and every shipping container to insure it is what the manifest says it is, for contaminents like lead, arsenic, melemine, etc., etc., etc. The entire shipping container is held until every test is complete. Then, if it is an electrical product, 10% should be unboxed, plugged in and operated according to the enclosed instructions. Any syntax errors, mis-spellings, etc. in the instructions should be cause for rejection of the entire shipment. Assign two (2) customs inspectors to inspect all the containers on each ship. That should take some time. The Chinese will retaliate, but that will be hard since they import so little compared to their dumping of their unemployment on us. A courageous President, Treasury Secretary and trade negotiator could suggest that we can not accept defective or contaminated products, that there is a history of such, that maybe if the Chinese currency was more in line with market reality, we might be a little more lenient.

September 30 2010 at 9:54 AM Report abuse +1 rate up rate down Reply
Manolo

It was about time. Very good if finally Obama does something for the economy.

September 30 2010 at 9:49 AM Report abuse +1 rate up rate down Reply
1 reply to Manolo's comment
Cattani

He has. But for a change it would be nice if he did something GOOD for the economy.

September 30 2010 at 10:51 AM Report abuse +2 rate up rate down Reply
itacurubi

A trade war with China could easily become very bad indeed; but I'm beginning to think that it might take a credible threat to get the relative value of the ren-min-bi revalued to a rationally compromised level with the dollar. It ought, though, to be done behind closed doors, so that neither the xenophobism of china nor that of the USa plays a part in what ought to be considered from a practical, not an ideological or nationalist, viewpoint.

September 30 2010 at 8:57 AM Report abuse +1 rate up rate down Reply
ingfp

Let's see who is left to negotiate?

September 30 2010 at 8:37 AM Report abuse +2 rate up rate down Reply
muenft

Obama never met a tax he didn;t like. He and his liberal friends in washington can tax his long suffereing subjects here in the states until they are glorified slaves but it looks like china is pushing back on his effort to gain tax dollars and further increse the cost of living here in the United States.

September 30 2010 at 8:32 AM Report abuse +3 rate up rate down Reply
chuck

Don't worry America!! Obama has your back!!!! He won't sign it into law because he is a coward and afraid to upset China! Let them practice trade restrictions against us is OK, but heaven forbid we should even think about playing fair in the trade game! BO = Coward to all other nations!

September 30 2010 at 8:24 AM Report abuse +4 rate up rate down Reply