Bring on the trade war

Business interest groups are lining up against the China currency bill.  The latest is the US Chamber of Commerce:

Thomas Donohue, the president and CEO of the influential business group, told a group of Dow Jones reporters and editors that U.S. policy makers should resist embracing protectionism. While understandable in times of economic stress, an attempt to force China’s hand could have negative repercussions for U.S. firms, he said, as Beijing seeks to maintain full employment for its citizens.
“They want to keep all those people working and if that was forced on them somehow … they would simply just drop the prices as low as they have to to keep those folks working,” Mr. Donohue said.
A bipartisan group of U.S. senators last week passed legislation intended to force Chinese officials to allow for greater appreciation of the yuan through trade channels and other international governing bodies. House GOP leaders have thus far balked at moving the bill, even though it enjoys support from both House Democrats and Republicans.

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