NEWS
US Senate postponed a vote involving yuan bill Obama ambiguous attitude
2021-09-15
6,duetoseriousdifferencesbetweentheUSpoliticalparties,theUSSenatedecidedtopostponeinvolvingtherenminbiexchangerate"CurrencyExchangeRateOversightReformActof2011,"thefinalvoteuntilnextTuesday(October11).Votinghadtobepostponedonthe3rdUSSenateonanexchangeratefortheChineseyuan,"CurrencyExchangeRateOversightReformActof2011,"atrialvote.USSenatethesamedaybytheproceduralmotion,pavingthewayforafinalvote.ThebillwouldmanipulatetheexchangerateandtradesubsidiesboundaskedtheUSgovernmenttoinvestigatethepresenceofmajortradingpartnersarenotdirectlyorindirectlytokeeptheircurrencies,aswellasexportsubsidiesfortheirbehavior.Oncethemajortradingpartnershavebeenidentifiedundervaluedexchangerate,theUSwillimposeitspunitivetariffs.ItisgenerallybelievedthatthebillaimedatChina,aimedatforcingtherapidappreciation.Forthisproposal,Chinaexpressedstrongopposition.ThebillneedstopassandgetsignedbythePresidentoftheUnitedStatesHouseandSenateinordertobecomeabill.Lastyear,theDemocratic-controlledHouseofRepresentativeshaspassedsimilarcurrencybill,buttheSenatedidnotact.TheUSSenatehadplannedonFriday(October7)oftheproposalforafinalvote.Local6,theUSSenatepostponedafinalvotewillbevotedonnextTuesday(October11).ReasonfortheUnitedStatesSenatetopostponethevote,theUSbipartisandisagreementontheRMBexchangerateissue,stalematecannotreachanagreement.Obama'sambiguousattitudeAccordingtoreports,someUSpoliticiansbelievethatChina'sundervaluedvaluetoexpandexports,andtheUnitedStatesblamedtherecenthighunemploymentrenminbi.Themotionwasnotonlymorethan50jointoppositiontotheUSbusinesscommunity,theUSRepublicanHouseSpeakerJohnBoehneralsoopposed,whichisconsidered"dangerous"ultravires.6,ObamaonthebillinvolvestheRMBexchangeratetomakereservationsresponse.Hesaidhefearedthebillmaynotbeincompliancewithinternationaltreatiesandobligations,andcannotbesupportedbytheWorldTradeOrganization.ObamaalsosaidthatChinainthepast20yearshasundergonesignificantchangesinthewaythetwocountriesinordertoachieveastableandhealthybilateralrelations,"theUnitedStatescanestablishawin-wintraderelationswithChina."ObamadidnotexplicitlysaywhetherhewouldvetothebillCongresstopromoteRMBexchangerate.However,healsopointedoutthathad"modest"appreciationoftheRMBexchangerateinthepastyear,butnotenough.