Senate Passes Bill to Alter China's Currency Practices

Monday, October 03, 2011

A Chinese bank staff counts stacks of 100-yuan notes in Huaibei, east China's Anhui province on October 20, 2010. (Stringer/Getty)

Senate leaders say the Chinese government's practice of forcing the value of the Yuan artificially low, in comparison to the U.S. dollar, gives Chinese companies an unfair advantage in trade, and is harming the American job market. To combat this, the Senate has passed a bipartisan bill, which the White House is reviewing, to pressure Beijing to alleviate some of those financial controls.

David Denoon, professor of politics and economics, and director of the Center on U.S.-China Relations at New York University, explains what the bill means for the markets.

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