China Threatens 'Trade War' Over Senate Bill
Bill would place tariff on countries that depress their currencies
By Kevin Spak,  Newser Staff
Posted Oct 10, 2011 10:54 AM CDT
A bank clerk counts US dollar notes near bundles of Chinese renminbi notes at a bank in Hefei, in central China's Anhui province.   (AP Photo/File)

(Newser) – A senior Chinese official warned today that the US is in for a “trade war” if it enacts a Senate bill that would punish China for artificially keeping its currency low. The bill “in no way represents the reality of the economic and trade relationship between China and the US,” a Chinese foreign minister tells Reuters. “The only result would be a trade war … that would be a lose-lose situation for both sides."

The bill, which seems all but certain to pass the Senate, would place a tariff on imports from countries that purposely hold down their currency—something China has long been accused of doing to give its manufacturers a competitive edge overseas. But the White House says the bill may violate international trade rules, and John Boehner called it “dangerous,” even as pressure mounts for him to bring it to the floor, the Hill reports.