Senators Told China Will Loosen Policy On CurrencyBy Paul BlusteinWashington Post Staff Writer
Friday, July 1, 2005; Page D01
A congressional showdown with China over its currency policies abated yesterday, as two U.S. senators said they had received assurances from Treasury Secretary John W. Snow and Federal Reserve Board Chairman Alan Greenspan that Beijing would soon allow the value of the yuan to rise. But a new confrontation erupted over the bid by a Chinese company to buy a U.S. oil producer, as the House overwhelmingly voted in favor of legislation aimed at blocking the Bush administration from approving the deal. Sens. Charles E. Schumer (D-N.Y.) and Lindsey O. Graham (R-S.C.), who sponsored a widely backed bill threatening to penalize Beijing for manipulating its currency, said they would postpone the legislation until later this year. Their announcement followed a meeting in the Capitol with Snow and Greenspan. "They have convinced us that the likelihood of real progress in China on currency revaluation is very real and could well occur in a very short while, in the next few months," Schumer said. "If we can get there by accommodation, so much the better."