China is warning of serious disruptions in U.S.-China trade ties if the U.S. Senate goes ahead with a measure to punish Beijing for undervaluing its currency. Senate members voted late Monday to proceed with the bill, setting the stage for several days of debate before it comes to a vote. If the bill becomes law, the United States could impose retaliatory tariffs on any country that deliberately keeps the value of its currency artificially low.
Chinese officials denounced the bill Tuesday, saying the United States is using the currency issue as an excuse for protectionist trade measures. In a posting on the government website, foreign ministry spokesman Ma Zhaoxu said the bill "gravely" violates World Trade Organization rules and would seriously upset trade and economic relations between the two nations.