China yuan bill risks trade war: House speaker

Reuters News
Posted: Oct 12, 2011 10:54 AM
China yuan bill risks trade war: House speaker

WASHINGTON (Reuters) - Legislation designed to press China to let its currency rise in value poses a "very severe risk" of a trade war and should not be taken up by the Congress, House of Representatives Speaker John Boehner said on Wednesday, a day after the bill passed the Senate.

Boehner's opposition to the measure, which would allow the U.S. government to slap countervailing duties on products from countries found to be subsidizing their exports by undervaluing their currencies, could kill the bill before any House vote. Boehner is the top Republican in Congress.

The House is controlled by Republicans and the Senate by Democrats.

(Reporting by Richard Cowan; Editing by Will Dunham)