Iowa Public Television


Lawmaker: China to Change Currency Policy Soon

posted on July 15, 2005

The Bush administration and members of Congress believe China likely will begin revaluing its currency in the coming months, Sen. Charles Schumer said late this week.

Schumer, D-N.Y., and Sen. Lindsey Graham, R-S.C., have delayed legislation that would impose penalty tariffs on Chinese imports if the Asian economic giant does not change its currency policies soon.

U.S. manufacturers contend that China's practice of linking its currency, the yuan, to the U.S. dollar at a fixed rate has undervalued the yuan by as much as 40 percent. That makes Chinese goods cheaper in America and U.S. products more expensive in China.

Schumer says the lawmakers have been told that China soon would change its currency policy. He and Graham met last month with Treasury Secretary John Snow and Federal Reserve Chairman Alan Greenspan.

Tags: China economy markets money news trade