China on Tuesday opposed the US Senate’s Yuan bill. China’s Foreign Ministry Spokesperson Ma Zhaoxu said the bill would harm trade relations between the US and China, who are each other’s second largest trading partners. He claimed the bill “seriously violates rules of the World Trade Organization and obstructs China-U.S. trade ties.”
The US Senate on Monday voted to allow the bill which addresses “currency manipulation” by China to be discussed on its floor. The Currency Exchange Rate Oversight Reform Act of 2011, if passed will permit the Yuan to appreciate further. Chinese and American business groups have opposed the bill. Officials are however anxious to take measures to control rising unemployment which is plaguing US economy.
For the bill to become law, it requires the consent of the House of Representatives and the assent of the President.