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Graham & Schumer want more

From MarketWatch:

Senators warn China on currency: Graham won't accept 'political fig leaf' on yuan peg

Sens. Lindsey Graham, R-S.C., and Chuck Schumer, D-N.Y., said they were encouraged by China's decision last week to let the currency appreciate by slightly more than 2% against the U.S. dollar, but expressed concern over a subsequent statement by China's central bank, which warned that there would be no further changes in the currency's valuation...

Schumer said he and Graham remained optimistic China would let the market play a role in dictating the value of the yuan.

If China doesn't let the currency appreciate further, the senators said they would press ahead with legislation to impose 27.5% tariffs on Chinese goods.

"While the Chinese central bank has said that they will not do another fixed valuation in the near future, we trust that the Chinese will allow market forces to work. "But we want to be very clear - our bill is still scheduled to be voted on before the end of the Senate session in October. If it seems like the Chinese are moving forward - great; if not, we are still ready to vote on our bill," Schumer said.

Silly grandstanding or political gamesmanship? Maybe both.

For all their talk, it'll never pass and therefore never come to a vote. But you can never say never so, if the US imposes 27.5% tariffs on Chinese goods I will eat my hat. If I had a hat. Though if I did it would probably be made in China. So maybe I wouldn't eat it since it would cost me 27.5% more to replace it.

July 29, 2005 at 09:13 AM in China | Permalink


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