A bill that aims to punish Beijing for holding down its currency passed the Senate on Tuesday despite a warning from China that the legislation could plunge the global economy into a 1930s-like depression.
The legislation passed the Democrat-led Senate with a comfortable 63-35 majority, with several Republican senators also supporting the bill. The vote could set up a tussle with the House of Representatives, whose Republican leaders have called the bill “dangerous” and so far have refused to schedule a vote on it.
Max Baucus, chairman of the Senate finance committee, said it was just one of several ways in which China broke world trade rules. “This bill sends an important message to China,” he said. “China must stop flouting the rules, and ending its currency manipulation is one important step in that process.”