President Obama said Thursday he was
concerned that efforts by Congress to pressure China on its currency
could backfire.
The Senate is due to vote later Thursday on a bill that would
authorize the Commerce Department to investigate cases of currency
undervaluation by U.S. trading partners.
"I believe what I think most Americans believe, which is trade is
great as long as everybody is playing by the same rules," Obama told
a press conference at the White House.
"My main concern ... is whatever tools we put in place, let's make
sure that these are tools that can actually work, that they're
consistent with our international treaties and obligations."
Obama did not specifically support or reject Congress' efforts,
but said he doesn't want such a move to be purely "symbolic," given
the potential of running afoul of the World Trade Organization.
"I think we've got a strong case to make, but we've just got to
make sure that we do it in a way that's going to be effective," he
said.
If the Currency Exchange Rate Oversight Act passes the 100-member
upper chamber, it would still need approval by the lower House of
Representatives. It was not clear if the conservative Republican
leadership in the House of Representatives would support the bill.
Supporters said the legislation would combat the loss of US jobs
because of competition from Chinese products that they said are
underpriced because of an artificially undervalued currency.
China rejected that argument, saying the bill could instead result
in a retaliatory wave of trade protectionism that could damage the
fitful global economic recovery.
