International Law

China Currency Bill Update: Yep, Just What You?d Expect

By Stan

Quick update on yesterday’s post about a new punitive tariff bill floating around the US Congress. The bill would raise tariffs on Chinese goods in retaliation for alleged currency manipulation.

My whole point of bringing it up yesterday was to comment on Secretary Geithner’s upcoming trip to Beijing, noting that in my opinion he does not need these jokers running around bad mouthing China when he is trying to build up a good relationship (unless he wants to play good cop/bad cop).

No surprises here:

Legislation aimed at curbing imports from China amid concerns that it is manipulating its currency is unlikely to advance soon because one of its chief sponsors said on Wednesday she had no commitments to act on it.

Sen. Debbie Stabenow, one of a bipartisan group of legislators who introduced the new bill on Wednesday, said it was uncertain when or how the legislation would advance since she had no commitments from Senate leaders to move it forward.

The legislation, formally introduced on Wednesday, would allow companies to ask the government to impose anti-dumping and countervailing duties on imports from any country whose currency has been “misaligned” for a prolonged period of time.

U.S. lawmakers have complained that China has manipulated its currency, but President Barack Obama’s Treasury Department declined to formally label China as a currency manipulator despite Obama last year raising expectations that he would.

“We certainly would like to have this pass as quickly as possible, I don’t have any commitments in terms of timeline at this point,” Stabenow, a Michigan Democrat, told reporters.

Stabenow said the White House had not revealed its position on the legislation[.]

My emphasis. Whether Obama/Geithner would rather that this bill goes away completely, or whether they wouldn’t mind having these guys out there playing bad cop, the administration cannot directly support the bill. In this sense, Stabenow’s statement about the White House position (as if they might come around at some point in the future and support the bill) is a bit ridiculous.

Good luck waiting for that White House support, Senator. Just don’t hold your breath.

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Full post as published by China Hearsay on May 14, 2009 (boomark / email).