The US House of Representatives is expected to pass legislation today that defines China’s manipulation of its exchange rate as being the same as providing a subsidy to Chinese manufacturers. Classifying China’s exchange rate policy in this manner will likely be used to justify additional duties on Chinese goods imported into the US.
While still requiring Senate approval and President Obama’s signature before becoming law, there is no question that the rhetoric between the two trade partners has increased in intensity of late.
Source: Reuters
