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Flooring company fears yuan adjustment

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High Five
Monday, May 03, 2010

Wellmade Floor Coverings Inc. exports more than 600 shipping containers of bamboo flooring products a year from its factory in China to its sales base in Wilsonville.

But the company worries its stateside sales will suffer if the U.S. convinces Beijing to let the value of the Chinese yuan rise against the dollar.

Anger is building in Congress over the yuan, which Western economists say may be undervalued by as much as 40 percent. U.S. officials maintain the artificially weak currency gives China an unfair advantage in world trade, effectively subsidizing Chinese exports and taxing goods it imports.

The conflict could conceivably escalate into a trade war, with both sides slapping tariffs on imports. But Beijing and Washington have shown restraint so far. U.S. Treasury Secretary Timothy Geithner, who visited Beijing for talks recently, has delayed a report on whether China manipulates its currency.

Read the full story at OregonLive.com.

{biztweet}Wellmade Floor Coverings yuan{/biztweet}

 
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