Showdown Looming With Congress Over China's Currency
A long anticipated showdown is looming between the White House and the Congress as the Senate prepares to introduce a bill that attempts to force China to loosen the reigns on its currency.
Supporters of the legislation like Lloyd Wood from the American Manufacturing Trade Action Coalition say it’s about time for a crackdown, while critics like Daniel Ikenson from the CATO Center for Trade Policy Studies say legislation like this will only lead to an economic and diplomatic rift between the two world superpowers.
The two analysts discussed their insights on “Power Lunch.”
“Something needs to be brought to the floor in short order,” said Lloyd. “It wouldn’t surprise me if China’s companies benefited as much as 40-50% on their exports to the U.S.” He also expressed that the U.S. “should be much more impatient about this. China is absolutely acting on its own interest. (China shouldn’t) expect to have unlimited access to the U.S. market when (they’re) not playing by the rules.”
“Imposing tariffs to try to affect some sort of change is not a good idea,” contradicted Ikenson, claiming that this is more of a “Political problem, not an economic problem."
The news conference to disclose the legislation will be held tomorrow at 1:30pm ET.