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US senator mulls enhancing China trade ties
(Reuters)
Updated: 2006-02-04 09:43

US Senate Finance Committee Chairman Charles Grassley could offer legislation this year to address growing trade concerns with China, an aide to the senator said on Friday.

"At this time, Sen. Grassley is evaluating ... constructive proposals to enhance our trade relations with China," the Grassley aide said.

Grassley, whose committee has jurisdiction over trade issues, played a key role last year in blocking a Senate bill threatening China with across-the-board tariffs.


US Senator Charles Grassley, center, gestures during a Capitol Hill news conference, Wednesday, Jan. 25, 2006. [AP/file]
But Grassley expressed concern earlier this week that Beijing has not moved more quickly to a market-determined exchange rate, after making a step in that direction in July.

Concern over the huge and growing U.S. trade deficit with China is expected to be high on Washington's agenda this year.

The U.S. Commerce Department is expected to release final 2005 figures next week showing the U.S. trade gap with China set a new record above $200 billion.

The U.S. Trade Representative's office also is expected this month to release the long-awaited results of a top-to-bottom review of trade relations with China.

Grassley is waiting to see the results of that study before making a final decision on legislation, his aide said.

"We hope that there will be a more balanced debate on the details on our relationship with China, the pros and the cons," the Grassley aide said at an off-the-record discussion on the congressional trade agenda.

Grassley's office later gave permission for the speaker to be quoted and identified as a Grassley aide.

The House of Representatives passed legislation last year aimed at several China trade irritants. However, Grassley refused to move a similar bill in the Senate.



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