Snow warns China of angry US Congress
Speaking at an afternoon luncheon before the American Iron and Steel Institute, US Treasury Secretary John Snow warned China that it faces stiff retaliation from Capitol Hill if it does not quickly alter its currency tactics The Bush Administration is taking China to task over what it sees as a deliberate attempt to manipulate its currency to perform better against a surging dollar. China is known for pegging the yuan at about 8.28 per dollar. US manufacturers and lawmakers bemoan the fact that this gives China an unfair price advantage that allows Chinese goods to flood the US market. Those opposed to Chinas currency manipulation go on to argue that this surge of cheap Chinese imports leads to factory closures and lost jobs in the US. Snow warns that if China does not alter its habits in the next six months, it faces likely 27.5% tariff on exports a measure that might come up for a vote in the Senate in July.