The U.S. Senate has approved the controversial bill aimed at urging China to raise the worth of their Yuan, now China urges Obama to think twice about their 'protectionist' act. Once the US has passed the bill through the Senate, China has warned that the legislation could result in a “trade war” of increasing protectionist retaliation.

“The bill is a protectionist step that gravely violates World Trade Organization (WTO) rules,” said Ma Zhaoxu Foreign Ministry spokesman.“China urges the U.S. government, Congress and all quarters to resolutely oppose using domestic legislation to create a fuss about and put pressure on the RMB exchange rate,” continues Ma Zhaoxu

Many U.S. lawmakers, traffic unions and industrialized lobbists back up the bill and believe that China is holding down the rate of their RMB to give its exports a competitve advantage in worldwide markets which to other countries gives China an unfair advantage. But, “Making groundless accusations about the RMB exchange rate will not solve the United States' lack of savings, trade deficit or high unemployment rate,” said the Chinese Central Bank in response to the U.S. Senate

Both the Chinese and the U.S. government have promised to deal with the imbalances, but the U.S. trade deficit with China in 2010 increased to US$273 billion, up from about US$227 billion in 2009, U.S. data shows.