Tags: China | Lawmakers | Pressure | Currency

China Rejects U.S. Lawmakers' Pressure on Currency

Thursday, 18 Mar 2010 07:06 AM

 

China rejected pressure by U.S. lawmakers for Beijing to ease currency controls and accused Washington on Thursday of trade protectionism that it said might hurt the global recovery.

Responding to a letter this week by 130 American lawmakers appealing to the White House to take action over currency, a foreign ministry spokesman insisted Beijing is not intentionally pursuing a trade surplus.

"If a country pressures another to appreciate while at the same time depreciating its currency and using protectionism to restrict imports, it is harmful not only to U.S.-China trade but to trade as a whole," the spokesman, Qin Gang, said at a news briefing.

"Such behavior is a bad example of protectionism that is detrimental to the recovery of the world economy," Qin said.

Business groups say China's currency controls keep the yuan undervalued by up to 40 percent, giving its exporters an unfair price advantage and swelling its multibillion-dollar trade surplus.

This week's letter from American lawmakers appealed to President Barack Obama to label Beijing a currency manipulator in a U.S. Treasury Department report due in April. That could set the stage for a World Trade Organization complaint and possible trade sanctions.

Premier Wen Jiabao said Sunday the yuan was not undervalued and dismissed "finger-pointing" by other governments as unhelpful. He promised exchange rate reforms but said the currency would remain at a "stable and balanced" level.

Beijing has held the yuan steady against the U.S. dollar for 18 months to help Chinese exporters compete amid the global downturn.

Analysts expect Beijing to allow the yuan to rise gradually later this year but say it is likely to gain no more the 5 percent against the dollar by the end of 2010. But some say Chinese leaders might delay acting because they don't want to be seen as giving in to American pressure.

© Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

House Committee Slams VA for Not Releasing Health Data

Wednesday, 28 Jan 2015 22:56 PM

The Department of Veterans Affairs came under fire Wednesday for holding back information crucial to overseeing its aili . . .

Mike Huckabee: Misquote on 'Trashy Women' Was No Mistake

Wednesday, 28 Jan 2015 22:51 PM

Former Fox News host Mike Huckabee says it was no mistake when the website Politico reported that he said the women of F . . .

Senate Health Panel Leaving Out Obamacare Opponents

Wednesday, 28 Jan 2015 22:21 PM

With the Senate Health, Education, Labor and Pensions Committee (HELP) scheduled to hold hearings Thursday morning on wh . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved