Finance unveils China currency bill

Four key senators on Wednesday unveiled legislation designed to make it more difficult for the Department of Treasury to avoid finding that China is artificially lowering the value of its currency, which they said contributes to the U.S. trade deficit.

{mosads}The long-awaited bill sponsored by Finance Committee Chairman Max Baucus (D-Mont.), ranking member Chuck Grassley (R-Iowa) and Sens. Charles Schumer (D-N.Y.) and Lindsey Graham (R-S.C.) could lead to significant consequences for China or any other country found to have a misaligned currency.

The bill was announced the same day the Department of Treasury released a report that once again found China was not manipulating its currency, which drew criticism from Schumer, House Ways and Means Committee Chairman Charles Rangel (D-N.Y.) and even administration allies such as former Michigan Gov. John Engler (R), the president of the National Association of Manufacturers.

“It is difficult to understand why Treasury chooses not to say that currency manipulation is taking place, when everyone knows it is,” Engler said in a statement. “This was a missed opportunity to put more pressure on China.” Engler complimented the Senate bill in a separate statement that stopped short of endorsing it.