America businesses have competing views on Yuan revaluation

While nearly 3 months have passed since China famously revalued its currency, the subject remains a hot political issue in America. Several politicians, led by Charles Schumer, are again fighting to pass a bill that would levy a 27% tariff on all Chinese imports, if China fails to fully revalue within one year of the bill’s passage. This bill is supported broadly by small businesses and middle market American companies that feel they are being squeezed by low-cost Chinese labor. On the other end of this debate stand multinational companies, many of whom have opened production facilities in China to take advantage of this low-cost labor. These multinationals, which are understandably against Yuan revaluation, have much more political clout, which may explain why President Bush has stubbornly refused to take action against China.