Talk Of Chinese Currency Bill Coincides With Hu's Visit

A bipartisan duo in the Senate is preparing legislation aimed at discouraging China from undervaluing its currency.

In a letter to Treasury Secretary Tim Geithner, Sens. Sherrod Brown (D-Ohio) and OIympia Snowe (R-Maine) said they would reintroduce a bill that the House passed overwhelmingly just a few months back. The Currency Reform for Fair Trade Act would instruct the Commerce Department to “treat currency undervaluation as a prohibited export subsidy.” As a result, the federal government would have the power to impose taxes on Chinese exports.

“There’s bipartisan consensus that if we want to get our economy back on track, we must act—and act now—to penalize countries like China that violate global trade laws,” Brown said on Tuesday.

Both Brown and Snowe said that they are pleased with Geithner’s stance on the need for China to allow its currency to appreciate more rapidly, but added that legislation is necessary to protect American businesses.

The timing of the push for legislative action coincides with Chinese President Hu Jintao’s visit to the U.S. In Washington, Hu will meet with President Obama and members of his cabinet, as well as other business leaders. Hu and Obama will take part in an elegant state dinner at the White House on Wednesday night.