BEIJING, Sept 30 (Reuters) - A bill passed by the U.S. House of Representatives that would penalise China for not letting the yuan rise faster violates the rules of the World Trade Organisation, China's Ministry of Commerce said on Thursday.
The bill allows the U.S. Commerce Department to treat "fundamentally undervalued currencies" as an illegal export subsidy so that U.S. companies can request a countervailing duty to offset China's price advantage. [ID:nN29240437]
In response, the official Xinhua news agency quoted China's commerce ministry spokesman, Yao Jian, as saying: "Starting a countervailing investigation in the name of exchange rates does not conform with relevant WTO rules."
The bill would need to be passed by the Senate and signed by President Barack Obama for it to become law. (Reporting by Zhou Xin and Alan Wheatley; Editing by Ken Wills) (Reporting by Alan Wheatley)