The US Congress moved closer to punishing China for allegedly manipulating its currency, as a key committee of the House of Representatives voted to advance legislation that could heighten economic tensions between Washington and Beijing.
The Ways and Means Committee, which has jurisdiction over trade, approved the currency bill on Friday with bipartisan support, paving the way for a vote in the full House next week.
The legislation would allow the US to use estimates of currency undervaluation to calculate countervailing duties on imports from China and other countries. The language of the bill was recently changed to reduce its chances of being successfully challenged at the World Trade Organisation, making it more palatable to centrist Democrats and some Republicans, even though there are still concerns that it may not pass muster with global trade rules.