BEIJING (CNN) — A bill that will penalize China for allegedly manipulating its currency to gain a trade advantage is headed for a vote in the U.S. Senate Tuesday, adding pressure on China to appreciate the yuan.
China opposes the bill and warns of a trade war if the bill is passed.
«Should the proposed legislation be made into law, the result would be a trade war and that would be a lose-lose situation for both sides,» said Vice Foreign Minister Cui Tiankai.
«It would be detrimental to the development of economic ties and might have an adverse impact on bilateral relations.»
Vice Minister Cui spoke in a press briefing one day before a high-level meeting in Beijing with his American counterpart, U.S. Assistant Secretary of State Kurt Campbell. The two senior diplomats are expected to discuss bilateral, regional and global issues.
Even if the bill passes in the Senate, it still needs to go through deliberation and vote by the U.S. House of Representatives.
House Speaker John Boehner has signaled his opposition to the bill. «I think it’s pretty dangerous to be moving legislation through the United States Congress forcing someone to deal with the value of their currency,» Boehner told reporters on Capitol Hill.
Source: CNN