China warns of trade war as US opens currency debate

China has warned of a possible trade war as the US Senate voted in favour of debating laws which could pressure it to let the renminbi rise.

The propsed bill would give the US government the power to add tariffs to goods imported from countries deemed to be undervaluing their currencies to boost exports, the BBC reports. Politicians and trade groups have accused China of manipulating its currency in this way, and have called for legislation to create a level playing field. The Chinese government said it "firmly opposed" the bill, warning of a potential trade war if Washington gives the proposals the green light. It accused the US of using the "so-called currency imbalance as an excuse to upgrade the exchange rate furthe...