[Here we go again and soon it may get dicey...]
Senators renew China tariff threat if yuan inaction
yahoo.reuters.com
Thu Jul 28, 2005 02:13 PM ET
(Adds Graham quotes, background)
WASHINGTON, July 28 (Reuters) - Two U.S. senators on Thursday said they are prepared to push for passage of legislation imposing stiff tariffs on imports from China if Beijing does not take further steps to adjust the yuan.
"We want to be very clear: Our bill is still scheduled to be voted on before the end of the Senate session in October," said Sen. Charles Schumer, a New York Democrat. "If it seems like the Chinese are moving forward, great. If not, we are still ready to vote on our bill."
Last Thursday, China revalued its currency 2.1 percent upward against the dollar and abandoned a decade-old peg to the U.S. currency. But the move was less than the Bush administration was thought to be seeking.
Sen. Schumer and Sen. Lindsey Graham, a South Carolina Republican, said they would watch developments before deciding whether to press their legislation, which would impose a 27.5 percent across-the-board tariff on imports from China.
"We're looking for substantial, major change and we're patient and we understand you can't fix this problem overnight," said Graham.
"If the revaluation continues throughout August and September and the rest of the year, then we can be hopeful that this is a substantive reform effort by China to get their currency practices within international norms," he said.
If the rise of the Chinese currency did not exceed 2.1 percent, last week's move by Beijing should be seen as a "political figleaf" Graham said.
In April, the Senate voted 67-33 against a motion to kill the legislation, catching Senate leaders off guard. Graham said this reflected a "sea change" in Congressional thinking about China.
"If we back off one bit, if we show any signs of not being committed here, we're sending the wrong signal to China," Graham told reporters on the eve of Congress' August recess. |
