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(Reuters) - A U.S. bill to pressure China into letting its currency rise in value, which has drawn warnings from Beijing of a possible trade war, ran into opposition from the top Republican in Congress on Tuesday.
The strong misgivings of House of Representatives Speaker John Boehner were the first clear sign the currency legislation might fizzle out, as similar bills have done since lawmakers began targeting China's yuan policy in 2005.
"I think it's pretty dangerous to be moving legislation through the United States Congress forcing someone to deal with the value of their currency," Boehner told reporters.
"While I've got concerns about how the Chinese have dealt with their currency, I'm not sure this is the way to fix it."
On Monday, the Senate voted to open debate on a bill that calls for U.S. tariffs on imports from countries with deliberately undervalued currencies, prompting an angry rebuke from China.
Many economists say China holds down the value of its yuan currency to give its exporters an edge in global markets. China says it is committed to gradual currency reform and notes that the yuan has risen 30 percent against the dollar since 2005.
House speakers normally get their way on legislation. But Boehner has to contend this time with signs of growing support from rank-and-file members of his own party for the currency bill and tough talk about China from a top Republican presidential candidate, Mitt Romney.
Democrats piled pressure on Boehner, urging him to keep a promise he made when he took office in January and let the House "work its will.
"For some inexplicable reason, the Republican leadership in the House is siding with the Chinese government. This is not the time to go soft on Beijing," said Democratic Senator Charles Schumer, a co-author of the currency bill.
"The Chinese only understand one thing: being tough," he said on the Senate floor, rejecting calls from other senators for multilateral talks.
The strong misgivings of House of Representatives Speaker John Boehner were the first clear sign the currency legislation might fizzle out, as similar bills have done since lawmakers began targeting China's yuan policy in 2005.
"I think it's pretty dangerous to be moving legislation through the United States Congress forcing someone to deal with the value of their currency," Boehner told reporters.
"While I've got concerns about how the Chinese have dealt with their currency, I'm not sure this is the way to fix it."
On Monday, the Senate voted to open debate on a bill that calls for U.S. tariffs on imports from countries with deliberately undervalued currencies, prompting an angry rebuke from China.
Many economists say China holds down the value of its yuan currency to give its exporters an edge in global markets. China says it is committed to gradual currency reform and notes that the yuan has risen 30 percent against the dollar since 2005.
House speakers normally get their way on legislation. But Boehner has to contend this time with signs of growing support from rank-and-file members of his own party for the currency bill and tough talk about China from a top Republican presidential candidate, Mitt Romney.
Democrats piled pressure on Boehner, urging him to keep a promise he made when he took office in January and let the House "work its will.
"For some inexplicable reason, the Republican leadership in the House is siding with the Chinese government. This is not the time to go soft on Beijing," said Democratic Senator Charles Schumer, a co-author of the currency bill.
"The Chinese only understand one thing: being tough," he said on the Senate floor, rejecting calls from other senators for multilateral talks.
This needs to pass , or something like it. It's been much too long since China has allowed it's currency to go up in value. As the world looks at China as " the next super power " , China officials are accused of manipulating it's currency to keep it's value low , keeping them in the best position for trade. And much more.
But then I guess thats too simple, its easier to blame china for what we can do ourselves.
