Term of the Day: China Currency Bill

TERM OF THE DAY - OCTOBER 18, 2011 Add Investopedia to Safe Sender List Find Investopedia on China Currency Bill What Does it Mean? A potential law passed in September 2011 by the U.S. Senate that would add tariffs to countries - most notably China - found to be undervaluing their currency. The China currency bill's intent is to make imports more expensive from these countries, evening the trade deficit and decreasing the countries' unfair economic advantage. It is a controversial bill because China holds enormous economic clout, as it's one of the U.S.'s top trading partners, and also holds a lot of U.S. debt.  Investopedia Says... There is fear that if the China currency bill passes the House and becomes law, China will respond in kind and spark a trading war with the U.S. and cause another... Read more » TODAY'S NEWSLETTER IS SPONSORED BY: Slideshow - 7 Currency Blunders You Could Cash In On The government has made its share of mistakes when it comes to printing money, and the results are collector's items.  View the Slideshow » Special Feature - Economic Recovery: Get Ready Take advantage of this once-in-a-lifetime opportunity in the financial markets. Click here for more. Related Terms Balanced Trade Export Protectionism Tariff Trade Deficit See More » Related Links The Basics Of Tariffs And Trade Barriers In Praise Of Trade Deficits Twin Deficits: Twice The Fun For The U.S See More » Find Term Of The day Useful? Check out our other FREE newsletters! Stock Watch Weekly Forex Weekly News To Use Warren Buffett Watch Investing Basics The Chart Advisor Report Professionals in the Money You are currently subscribed to term-of-the-day as: newsforward@autoforextradingpro.com To unsubscribe or change your email settings, please click here. Copyright © 2011 - All rights reserved. Investopedia ULC.