New Bill Could Ignite US-China Trade Wars

The US House of Representatives is expected to pass legislation today that defines China’s manipulation of its exchange rate as being the same as providing a subsidy to Chinese manufacturers. Classifying China’s exchange rate policy in this manner will likely be used to justify additional duties on Chinese goods imported into the US.

While still requiring Senate approval and President Obama’s signature before becoming law, there is no question that the rhetoric between the two trade partners has increased in intensity of late.

Source: Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.