By  on October 12, 2011

SHANGHAI — China issued a strong statement against a U.S. bill aimed at forcing Beijing to raise the value of its currency, calling the legislation a “grave” violation of World Trade Organization rules and the wrong solution for solving America’s economic woes.

“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 renminbi exchange rate,” a Foreign Ministry spokesman said in a statement posted Wednesday online. “It won’t be the solution for the U.S. economy and unemployment, and will disrupt the shared efforts of China and the United States, as well as the international community, to promote vigorous recovery in the global economy.”

The bill’s central component would direct the U.S. Commerce Department to treat undervalued currency as an illegal export subsidy under U.S. trade laws, which could lead to punitive import tariffs on imports from China and other countries.

China’s state-run Xinhua News Agency, considered a mouthpiece of the government, called the legislation, passed by the Senate Tuesday night on a bipartisan vote of 63 to 35, an act of “callous disregard of Beijing’s strong opposition” and a “ticking time bomb that may ignite a potential trade war between the world’s two largest economies.”

The People’s Bank of China pushed the yuan lower against the dollar Wednesday morning, only hours after the legislation was passed in Washington, with a trading rate of 6.3598, compared to 6.3483 on Tuesday. Late in the day, the currency’s value rose slightly to 6.3585, compared with 6.3750 near close of day on Tuesday.

To continue reading this article...

To Read the Full Article

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus