Senators maintain yuan undervalued

The US senators in Beijing to discuss the value of the yuan with top officials have said the currency remains �seriously undervalued�, the Financial Times reported. They are co-sponsoring legislation that proposes a significant tariff be slapped on Chinese imports, which is due to be voted on by the end of the month. Charles Schumer, a Democrat, and Lindsey Graham, a Republican, said China should take immediate steps to avoid punishment handed down from the US Congress. The senators believe the yuan is 15-40% undervalued compared to the dollar. The Schumer-Graham bill would impose a 27.5% tariff on all Chinese imports if the yuan does not rise substantially. They have not yet decided whether to delay the vote until after President Hu Jintao’s trip to Washington.