The House of Representatives by a wide margin passed legislation to penalize China's foreign-exchange practices, sending a powerful warning to Beijing but risking a response that could harm U.S. companies and consumers.

The measure would allow, but not require, the U.S. to levy tariffs on countries that undervalue their currencies, which makes their goods cheaper relative to American products. A majority of Republicans lined up with Democrats to pass the bill on a 348-79 vote, highlighting lawmakers' long-simmering frustration with Chinese trade practices as well as their sensitivity to the faltering U.S. economic recovery with an election looming.

The vote marks the strongest trade measure aimed at China to make it through a chamber of Congress after more than a decade of threats by lawmakers. But despite the broad support Wednesday, dim Senate prospects make it unlikely the measure would become law this year.

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Filed under: * Economics, Politics • Economy • Corporations/Corporate Life • Credit Markets • The Banking System/Sector • The U.S. Government • The United States Currency (Dollar etc) • Foreign Relations • Politics in General • House of Representatives • * International News & Commentary • America/U.S.A. • Asia • China

1. billqs wrote: How many times and actions does it take to realize, “China is not our friend!” September 30, 9:36 am | [comment link]

2. Sick & Tired of Nuance wrote: Repeal GATT. October 1, 9:19 am | [comment link]

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