We’re not sure what they hope to accomplish with this, but the House has voted 348-79 to penalise China for its practice of fixing the yuan to the dollar, at a level which foreign exchange experts in Congress believe to be too low.
The measure would allow, but not require, the U.S. to levy tariffs on countries that undervalue their currencies. The bipartisan support highlights lawmakers’ long-simmering frustration with Chinese trade practices as well as their sensitivity to the faltering economic recovery with elections looming. It’s the strongest trade measure aimed at China to make it through a body of Congress after more than a decade of legislative threats by U.S. lawmakers.
We doubt this will go anywhere in the Senate, which is gridlocked beyond all rhyme and reason, but the message is sent.