Congress wants Yuan revaluation in 2006

Earlier this year, US Senators Charles Schumer and Lindsey Graham proposed a bill that would slap a 27.5% tariff on all Chinese imports, in the event that China failed to revalue the Yuan in a timely manner. After meeting with senior Chinese banking officials, however, the Senators agreed to postpone voting on the bill. This week marked another about-face, as they publicly announced that the bill would be reintroduced at the end of the year if China does not allow the Yuan to appreciate 7-10%, in a demonstration that they take US relations seriously. The Washington Post reports:

“My hope is that between now and the end of the year you will have a revaluation somewhere in the double-digit area,” said Sen. Lindsey Graham.

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