It is a trade war between the USA and China: the Senate with stars and stripes has in fact approved the law it provides for sanctions against the Asian giant for the devaluation of the yuan.
Il low value of China's national currency has hurt the US economy making imports of Chinese products all over the world rise to maximum levels, and consequently causing the crisis of several American factories, forcing them to make heavy layoffs. and in many cases even at the closure of the business.
Beijing's reaction is tough, threatening one "trade war". To support it is a Chinese Foreign Ministry spokesman, according to which the provision is “a serious breach of the rules of the WTO” and in any case “it will not be able to solve the problems of the American economy and unemployment”. “The US Senate – writes the official Chinese news agency Xinhua – has manufactured a time-delay bomb capable of unleashing a trade war between the two leading world economies. As has happened before, the Senate has chosen the bad remedy to try to heal America's chronic economic disease.
In the meantime, the law passed with 63 votes in favor and 35 against: US senators have expressed their dissatisfaction with trade relations between Washington and Beijing. However, the process could be blocked in the Chamber, where Republicans fear that unilateral action against China could trigger negative repercussions for the country. Even the Obama administration, according to rumors close to the White House, would prefer diplomatic persuasion to sanctions.
The law, more stringent than previous proposals, would penalize Chinese exports by allowing the US government to impose compensation rights. It would essentially be about taxes in addition to customs duties, which would make Chinese products less competitive in America.
