China to be punished over currency
Thursday 30th September, 2010
Big News Network.com Thursday 30th September, 2010
The US House of Representatives has approved a measure by 348-to-79 votes to punish China and other countries that undervalue their currencies.
The speaker of the House of Representatives, California Democrat Nancy Pelosi, said because the US/China trade deficit had become dramatically imbalanced, the legislation would strengthen the Obama administration and future US governments in negotiations with the Chinese.
US House members have long been worried that currency manipulation by the Chinese government means Chinese exports to the US are being artificially subsidised.
Pelosi said the subsidies translate into low-priced goods from China that hurt the US economy.
On Wednesday, President Barack Obama expressed concern about Chinese practices related to the yuan.
Speaking in Iowa, he said: “The reason that I’m pushing China about their currency is because their currency is undervalued.”