US House Of Representatives Passed High Vote Against RMB Exchange Rate Bill

China News Agency, Washington, September, 29

The bill will finally come into force, which is to be passed by the Senate and sent to Obama for signature.

However, as the US Congress is about to hold the mid-term elections, the Senate and the house of representatives are facing re-election. Whether the bill can finally go through these two passes still has many variables.

Before the day's vote, the house of Representatives first debated, and the majority of Democrats, including speaker of the house of Representatives, expressed support for the bill. Members of the Republican Party, including Dezhou congressman Kevin Brady, clearly expressed their opposition to Pelosi's vote.

According to the bill, the US Department of Commerce will be given more authority to make the so-called "currency underestimation" act as an export subsidy under certain conditions, and then levy countervailing duty on goods exported to the United States. The renminbi is the main target of the bill.

The US media said that it would be a rare thing in the US political arena to vote on a major policy motion in the absence of a few weeks from the crucial mid-term elections.

Critics have questioned Obama's Democratic Party's drive to pass the bill, mainly to ensure union support before the mid-term elections in November 2nd.

On the same day, the opposition Republicans questioned whether the bill could really reduce the US China trade deficit or create jobs.

On the day before the vote, the National Chamber of Commerce and 35 other major trade associations sent letters to several heavyweight members of the Congress, warning that the adoption of legislation to punish China's so-called undervaluation of the renminbi would only lead to trade disputes and harm us employment.

Earlier, these chambers of Commerce have sent letters to the Senate and the public for many times, claiming that the bill is suspected of violating the WTO rules.

Although the house hastily passed the bill, the Senate has not yet started the legislative process. Even if the Senate passes the bill, the final discretion is still in the Obama administration.

On the other hand, since the mid-term elections in the US Congress will be held in November 2nd, the 435 seats in the house of representatives will be all reelected, and 1/3 of the 100 seats in the Senate will be re elected, which will also add to the bill.

Senate leader aides and Senator Durbin said 28 days ago that the Senate would not vote before the mid-term elections, because members were busy campaigning for no time. He also said he could not assert whether there would be a chance to vote on the bill after the mid-term elections.

But Senator Bill Schumer, the founder of the Senate bill, said he plans to get the Senate to vote on the bill after the mid-term elections.