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Last Updated: Tuesday, 21 March 2006, 09:55 GMT
US senators press China on yuan
US Senators (from left) Charles Schumer, Tom Coburn and Lindsay Graham
Politicians see China as central to the growing US trade deficit
A delegation of US senators is visiting Beijing, amid a clamour in Washington for action over the value of the yuan and its impact on US-Chinese trade.

The US Senate will vote this month on a bill to impose tariffs of up to 27.5% on some Chinese goods unless Beijing moves to free up its currency.

Some US politicians believe the yuan is artificially undervalued, letting China sell its products more cheaply abroad.

China has ruled out another revaluation after raising the yuan's value in July.

'Limited progress'

Chinese Prime Minister Wen Jiabao said recently that Beijing would allow greater flexibility in its exchange rate.

However, the Bush administration is pressing for more substantial action, believing the yuan's value is fuelling the growing US trade deficit.

Ahead of a series of meetings with senior Chinese officials, Senator Charles Schumer said the purpose of the trip was not to deliver ultimatums but to learn about Chinese intentions on the issue.

"To say that there has been no progress would be wrong but to say that there has been complete progress would be wrong," he said.

"We would like to get an idea from our Chinese hosts what the future is going to be like."




SEE ALSO:
US trade deficit soars to record
14 Mar 06 |  Business
US toughens stance on China trade
14 Feb 06 |  Business
China's trade surplus 'to fall'
09 Feb 06 |  Business
Q&A: China revalues its currency
11 Oct 05 |  Business


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