US bill on China's currency 'does more harm than good'
Updated: 2011-10-06 08:06
WASHINGTON -- A bill proposed by the US Senate to punish China's alleged currency manipulation will not help the US create jobs, but will lead to negative results, the Washington Post said on Oct 4.
The Senate is expected to set a procedure vote at the evening on Oct 4 to decide whether to punish China for undervaluing its currency and taking away American jobs.
"It is a counterproductive bill", said the Washington Post in its editorial, adding that punish China's currency will not balance the US trade and create more jobs.
"Ending the trade deficit with China would not necessarily cure the overall US trade imbalance," the newspaper said. "That's because other low-wage countries...could easily take China's place."
It noted that the components of many "Chinese" goods are already made elsewhere, imported by China for assembly and then re-exported to the US. Only 20 to 30 percent of the value of Chinese goods in the United States would be affected by a stronger yuan, China's currency, also known as renminbi.
Besides, China is already gradually revaluing its currency, mainly because it must do so to stave off inflation within its own economy.
The Congress's move on currency bill will also harm the global economy, noted the article.
"The world economy has enough problems without adding a US-China trade rift to the list," it added.