Beijing, Oct 12 (ANI): Beijing has expressed strong opposition to a vote by the US Senate that passed a legislation targeting China's management of its currency, the Yuan.
The US Senate has recently passed a controversial currency bill that threatens to punish China for so-called 'currency manipulation' with retaliatory tariffs, despite strong opposition from China and many US business groups.
The Currency Exchange Rate Oversight Reform Act, sponsored by Senators Charles Schumer, Sherrod Brown and other Democratic and Republican Senators, was passed in a 63-35 vote in the Senate.
The bill is directed at the Yuan, which the US claimed is undervalued to make Chinese exports to the US cheaper.
China's Ministry of Commerce said the move has seriously violated international regulations and sent a wrong signal of escalating trade protectionism, Xinhua reports.
According to the report, the Senate bill mainly aims to make it easier for the US to designate China as a 'currency manipulator' and slap retaliatory tariffs on goods imported from China.
China has voiced its strong opposition to the US Senate's passing of the bill, warning the US politicians against politicizing the issue of China's currency and resorting to trade protectionism.
China's Vice Foreign Minister Cui Tiankai said that the bill could trigger a 'trade war' and hold back global economic recovery.
"(The currency bill) in no way represents the reality of the economic and trade relationship between China and the United States, and it might have an adverse impact on the development of the relations between the two countries," Tiankai said.
"Should the proposed legislation become law, the only result would be a trade war between China and the US and that would be a lose-lose situation for both sides," he added. (ANI)
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