Trade War With China Coming? newsvine furl google yahoo netscape

Democratic front runners Hillary Clinton and Barrack Obama have endorsed legislation calling for punitive trade tariffs on Chinese goods if the Chinese do not revalue their currency.

The legislation looks likely to pass with a veto-proof majority.

At issue is China's artificially depressed valuation of its own currency. By keeping it depressed, China maintains a trade imbalance with the U.S. to the tune of $232 billion a year. Were the Chinese currency allowed to float, American manufacturing would be more competitive and the trade imbalance would be lessened argue lawmakers.

Read More About:   Barack Obama | Business | China | Elections | Hillary Clinton | News | Politics | United States | World