U.S. Sen. Debbie Stabenow’s legislation to punish China for manipulation of its currency – giving them a distinct advantage in the world of trade – has created an unlikely bipartisan firestorm in Washington.
“We certainly … have concerns about this particular legislation,” said White House press secretary Jay Carney, expressing concerns about retaliation from the Chinese while indicating the president has taken no position on the measure.
House Speaker John Boehner predicted the bill would die in the House because it’s “dangerous” to mess with another country’s monetary policy.
“The only thing they understand is push back,” said Sen. Lindsey Graham, a South Carolina Republican, who is one of the top co-sponsors.
Senate Majority Leader Harry Reid predicts the bill will have wide support in the Senate. House Minority Whip Steny Hoyer said a House version of the currency bill has 218 co-sponsors — 61 of them Republican — and easily would pass the chamber.
With the Chinese threatening a trade war, the bill could pass the Senate as early as today. Stabenow issued a statement in response to China’s pushback:
“My message to China is simple — America has every right to continue to demand an end to illegal Chinese currency manipulation that costs us jobs and I will not back down on that. China should not fear competition on a level playing field. My proposals would create a competitive environment and hold countries that cheat accountable.”
Stay tuned.
