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New front in the currency wars

United States lawmakers have proposed fresh legislation that would force the administration to take a tougher line on China for currency manipulation, the Financial Times reported. The Treasury has refrained from branding China as a currency manipulator in its twice-yearly reports to Congress on exchange rates and trade. Senator Charles Grassley, chairman of the Senate finance committee, and Max Baucus, the committee's senior Democrat, propose forcing the American administration to react more strongly to currency policies from Beijing. �We have grown dissatisfied with how we approach the currency issue as a government,� Grassley said. �We need a good system with real teeth and hard triggers.� The proposal comes as a vote on Senator Charles Schumer's bill, which would see a tariff imposed on Chinese imports, was delayed until September – after President Hu Jintao visits Washington.

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