"Trade wars and tariffs never solve anything. Nonetheless Congress addresses Chinese currency manipulation
After years of trying, Congress is taking another stab at retaliating against what many see as Chinese manipulation of its currency to make its exports to the United States cheaper and U.S. goods more expensive in China.at http://globaleconomicanalysis.blogspot.com/2011/10/trade-war-threat-looms-once-again.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29
The Senate is expected to take up legislation Monday that would impose higher U.S. duties on Chinese products to offset the perceived advantage that critics say China gets by undervaluing its currency.
The Senate bill has bipartisan support and is expected to clear a procedural hurdle Monday evening. But intense lobbying against it by American-based multinational corporations and their trade associations could spell trouble for the legislation.
Sens. Chuck Schumer, D-N.Y., and Lindsey Graham, R-S.C., along with others, have tried for at least six years to pass legislation making it easier to impose higher tariffs on Chinese goods. That would help compensate for what they say is Beijing's effort to keep its currency, the yuan, undervalued against the dollar..."
