U.S. Senate weighs bill to punish China for undervaluing currency

Americans were lazy,

just-a-guy, that's actually not true. US productivity is the highest in the world economy. We work smarter and efficiently. Overtimers are perceived as a negative characteristics at US work places.

We value Work hard and Play hard. That's our culture. Amen to that!

Article states:"the value of the yuan is still as much as 40 percent below what it should be, keeping the prices of Chinese goods artificially low and U.S. products excessively high.

China currently has 1 trillion dollars in the U.S. treasury, and if the U.S. goverment decides to strenghten the yuan by 30-40 percent, then the value of Yuan will increase by $300-$400 billion dollars in revised exchange rate. What if China pulls out a big chunk of U.S. investment, U.S. will be in a deeper crisis debt then ever. Ideal way is to implement 25 percent tariffs on all goods shipped from China to U.S.

And the amercams aren't undervaluing their own currency with "QE" and "QE2"? It's the Chinese and other investors who lost billions because of the currency was already underway. Who believes this nonsense?

Is the Japanese Diet weighing a bill to punish the U.S. for undervaluing its currrency?

Serrano, market decides a value of $$ as well as Japanese currency Yen while Chinese currency is fixed by the Beijing.

I hate to be the one that that has to say perhaps the Chinese are correct in their defence of the Yuan as it seems their methods allthough seen to be unfair in relation to other global currenceis seem to be working very well in comparison to the rest of the world. Maybe we should all adopt their tactics.Might be wrong, but just a thought

Don't punish. Just copy.

Just copy what China is doing. Obviously whatever China is doing is working.

So America should devalue the dollar in relation to the yuan. When someone or some corporation in America buys goods from China, devalue the dollar for those goods.

If China complains, just tell 'em it's a compliment - America is merely learning from the master. See, that's diplomacy: getting your way while making the other feel better about it, hahaha.

A beneficiery of this act: JAPAN!

yes, then punish Japan for not stimulating domestic market by passing on strong Yen benefits to conumers.

Is the Japanese Diet weighing a bill to punish the U.S. for undervaluing its currrency?

How about punishing the US for overvalueing the dollar?

China could sell the dollars it holds. What would that do to the dollar? Render it worthless?

Punish... the US really used that word? Come on who do you think you are America?

China taking away American jobs? I take it their are no US companies having their manafacturing products produced in China in order to take advantage of cheap labour

Christina O'NeillOct. 04, 2011 - 09:41AM JST. I take it their are no US companies having their manafacturing products produced in China in order to take advantage of cheap labour.

Almost half of the U.S. trade deficient is a direct result of U.S. companies manufacturing in China, such as Apple, HP, Intel, Walmart, etc. who wants to maximize the profits. Still, even without the U.S. companies, trade deficiet by Chinese companies alone is staggering. Something has to be done to make the playing field more balanced. Maybe a tariffs on all products entering U.S.

Maybe China need a Plaza Accord 2.0. That maybe put China and basically including Japan and the rest of East Asia into a Lost Decade or two.

just-a-guyOct. 04, 2011 - 10:58AM JST

While China is manipulating its currency and exporting unemployment to US and Japan, US can export inflation to China. Inflation and deflation are dangerious species we all need to avoid.

Not to worry. Once the Republican's are done with America, it will resemble China in wage rates, worker's rights and environmental protection. Then the US will be able to compete on a level playing field.

I just can't see Pres Obama signing this.

Pre- election shows ? Even then, but please try out with something new ?

For more than forty years US, Canadian, Australian New Zealand, British and European manufacturers have been relocating to China and helped build up a strong economy generating hundreds of millions of jobs and bringing China into the modern world. If any one wants these jobs you can always consider immigrating to China and getting into the queue. The free world market is raising the standard of living of people right around the world and is a force for good. The more advanced economies need to look to newer ways of generating economic activity outside of making consumer goods which was considered always a n undersirable job for the poorer working class. If China raises the value of its currency by forty percent it makes China 40% richer and enables it to come in and buy up your Companies or land much cheaper. China still has massive unemployment problems to deal with but its developing technology and the tens of millions of technically trained people it is educating, similar to India, means a coming rush of new sophisticated technology we have not even dreamt of. They make great Citizens if they immigrate to your Country as we in Melbourne have found. God bless them I say - Good people!. America's problem is self imposed - just pay more taxes and live within your means please. We need a bountiful strong US.

Chinese products are always better, and there are more and more in-house developments - clear that one who lagged behind so far copied first, ​​the Japanese did it also at that time.

China should be regarded only as a partner, never as an enemy - the Americans need to learn.

They strive to be fair, to stabilize the West - that is also in their interest, we are their customers, they are like ours -why does nobody understand that?

Of course, China is unable to do everything. Are we capable of the remarkable Greek and Italian rescue? I think not ...

"Chinese products are always better"

You can only determine their products "better" if you're basing your opinion on unit price, rather than quality, reliability or durability.

"​​the Japanese did it also at that time."

The Japanese built quality copies. Copies that were oft better quality than their American or European originals, if not lacking style. A far cry fom the turd arriving from China world over by the container-load....

Almost half of the U.S. trade deficient is a direct result of U.S. companies manufacturing in China, such as Apple, HP, Intel, Walmart, etc. who wants to maximize the profits. Still, even without the U.S. companies, trade deficiet by Chinese companies alone is staggering. Something has to be done to make the playing field more balanced. Maybe a tariffs on all products entering U.S.

I think looking to find a solution at China's end would not work. Do not think that China will budge a yuan. US should try give up drawing water from an empty well.

A more likely solution would be for US"s own manufacturing giants who are currently operating from China, to move back to US. In doing so, they will play a big part in reviving the economy of US.

These manufacturing giants should look to become US's solution, rather than being part of the cause of US's economy woes. No doubt their profits might become lower but these manufacturing giants should consider their social and corporate responsibilities to their mother country and the masses in general.

The sky is the limit. How much profit does one want ?

sqwakOct. 05, 2011 - 12:21AM JST. These manufacturing giants should look to become US's solution, rather than being part of the cause of US's economy woes. No doubt their profits might become lower but these manufacturing giants should consider their social and corporate responsibilities to their mother country and the masses in general.

U.S. solution? Looking for new suppliers in U.S. is not easy, and increase in more decentralize regional suppliers will increase costs, thereby squeezing considerable profit margins. U.S. management still gets rewarded for the short term gains, and they really don't care where it is made as long as the bottom line is increased. There are only few fortune 500 manufacturing companies that are thinking like you do.

A beneficiery of this act: JAPAN!

i can say that obama not good enough to be president of US. the economy of US still not recover since this fellow take over! you cant blame china for this coz they also want to protect his country, if let say US do the same as china, how? talk nonsense!

And today the rent-a-protesters on Wall St. are basically demanding a new Smoot-Hawley tariff to accompany the actions against the Chinese currency. Do you think it is a coincidence?

You can't just attack capitalism at home.Mr Obama has to appear 'fair' in all of this.

Lets just fight a trade war we will win.

I am no China lover but I think the USA would be really, really stupid to try and do this now with China, considering that CHINA gives billions and billions of $$$$$$ to the USA buying up the US debt, buying up its bonds etc..just like the USA shooting itself right in the foot!

It’s time, said Sen Bob Casey, a Democrat, to “let the officials in China know that there are consequences to cheating.”

Absolutely. Two decades of unfair competition and meaningless promises to do something about the value of the yuan is enough evidence that it is time to play hardball.

The Fair Currency Coalition.............A fool's errand! Period!

And when you irk China who pray-tell will buy the massive amount of US T-Bonds that have to be bought daily?

'punish'? hahahahaha

The article headline is misleading. The US is in no position " punish" China. However, introducing tariffs on trade partners who practise dumping is perfectly legal and sensible.

GoGoGo - I don't believe they used the word "punish". I believe a reporter chose that word but not official government. We aren't punishing anybody these days, let alone China.

The American government is weak. When is the last time it ever accomplished anything except funding new ways to kill people?

Americans were lazy, what else could they do besides blashing China! For Chinese leaders the greatest beneficiery is potraying America is a 'threat' like imperial Japan, an aggressor,a bully and a despicable troublemaker, good for 'Chinese nationalisms'! Those silly bills never work, America needs Chinese money!

@iWorld: The Plaza accord 1985 was for stooges like Japanese not Chinese!

Grow up a little bit...my american friends! Once you lost your jobs you lost it forever and no matter how much you pouting, you wont get it back! Trying to get back your jobs from China..... Was that a death wish?? Or you guys want China santioning 'rare earth' again when there is a dispute arise?