US Senate Votes On China Related Exchange Rate Bill

In the evening of the eastern time of the United States on the night of October 11th (Beijing time October 12th morning), the US Senate voted to adopt the China related exchange rate bill, which is aimed at reducing the value of the local currency by the Chinese people. Sanction The bill will be sent to the house of representatives to vote.

The bill, called the currency exchange rate supervision reform act 2011, asked the US government to investigate whether China deliberately suppressed the value of the renminbi to decide whether to punish the so-called Chinese manipulation. exchange rate Act. The bill was passed by the Democratic led Senate by 63 votes and 35 votes.

According to the procedure, the next move will be sent to the house of representatives to vote. The majority leader of the house of Representatives and Republican Boehner warned last week that the proposal was "quite dangerous" and could trigger a trade war between China and the United States. Boehner's opposition may add to the difficulty of the bill being passed in the house.

On the one hand, the Obama administration criticised China for lowering the RMB exchange rate and demanding the appreciation of the renminbi, but at the same time worried that the Senate bill was contrary to the provisions of the world trade organization. House Republican leader Canto (Eric Cantor) urged the Obama administration to make a clear decision on the 11 day. (