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Senate bill would punish China for undervaluing currency, driving up costs of US goods
WASHINGTON (AP) ' The Senate is advancing legislation to punish China for undervaluing its currency and taking away American jobs. At issue is whether the measure would boost the American economy or initiate a damaging trade war with a major trading partner.
The legislation has bipartisan backing and on Monday evening is expected to garner the 60 votes needed to move it to the Senate floor. But the bill faces considerable hurdles. The Obama White House is leery of taking bilateral action against China, and House Republican leaders have shown no interest in bringing it to a vote.
Supporters of the bill say the value of the yuan is as much as 40 percent below what it should be, keeping the prices of Chinese goods artificially low and U.S. products excessively high.