China is anything but happy with the U.S. Senate’s decision to pass an anti-Yuan bill into law last month. China’s Commerce Department stated that if President Barack Obama goes through with the signing of the bill, the decision would be met with very harsh retaliation. They state that the current proposed legislation would do nothing but harm the interests of both nations.

China’s currently implemented currency is not free floating against the dollar. It tends to change in value based on the different decisions made at the People’s Bank of China. However, it has increased in strength by more than 40% since 2005. The Yuan is expected to appreciate by around 6% annually. Many of the multination U.S. companies that are residing in China disagree with the bill, saying that it is simply detrimental to the relationship between both of the countries. House Republicans have already made their decision, saying the bill would be dead-on-arrival before a vote would even be considered.

The U.S Commerce Department stated that last week it had discovered Chinese companies that were dumping steel wheels and manipulating duties on U.S. imports ranging from 110.58 to 193.54%. There was also a trade complaint filed against China by a group of U.S. solar cell and panel makers, stating that China is illegally dumping silicon solar cells and panels by using massive subsidies. Solar cell panel production is currently dominated by the Chinese, and is considered to have a very impressive green technology portfolio.