Duties wrong way on China yuan: Snow
(Reuters)
Updated: 2005-10-27 07:06

China implemented a modest yuan revaluation in July but U.S. lawmakers want more. American exporters see the yuan as undervalued, giving Chinese competitors an unfair trade edge.

Snow said he pointed out to Chinese officials that it was in their interests and in the global economy's interests to permit more flexibility.

"Movement on the currency would help defuse this whole isolationist, protectionist tariff legislation coming through the Congress," Snow said.

Meanwhile, Senate Finance Committee Charles Grassley, an Iowa Republican, said whether the Senate votes on the bill "is directly related to what China does."

At the same time, Grassley expressed doubt the legislation could make it through both the Senate and the House of Representatives to become law.

In his prepared remarks, Snow noted that a tax panel is due on Tuesday to issue suggestions for simplifying the complex U.S. tax code. But he later turned aside a question on whether the Bush administration will propose a comprehensive tax overhaul by year-end.

"We are not going to tie ourselves to any particular timeframe," he said.