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US Senate to take up Chinese currency bill

US Senate Majority Leader Harry Reid said he plans to introduce a bill next week to crack down on China’s undervalued currency, despite concerns that could provoke further trade disputes and dampen global economic growth, Reuters reported. Under the bill, the US Commerce Department would treat undervalued currencies as a subsidy, thereby allowing companies to apply for countervailing duties against imports. “I don’t think there is anything more important [as a] jobs measure than China trade,” Reid said Monday, adding that the measure had support from both Republicans and Democrats. Opponents acknowledge that Reid probably has the votes to pass the legislation in the Senate, but say the House Republican leaders may prevent it from reaching President Obama’s desk. The value of the renminbi has risen about 3% this year, but Reid and other lawmakers argue the currency is still undervalued by as much as 25-40% against the US dollar, giving Chinese manufacturers an unfair price advantage.

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