WASHINGTON (AP) — President Barack Obama says China has “gamed” the trading system to its advantage but says he worries that bipartisan Senate legislation to penalize Beijing for undervaluing its currency could conflict with international agreements. Still, he did not say whether he would veto the legislation.
Senators pushing the legislation argue that China’s undervalued currency is equivalent to a 25 percent subsidy for Chinese products and that it takes away American jobs.
Obama said he worries that any sanctions imposed by the United States might not be upheld by the World Trade Organization, which adjudicates trade disputes.
Obama credited China for lifting millions of its people out of poverty. But he said: “What is also true is that China has been very aggressive in gaming the trading system to its advantage.”