China pushes back on currency criticism
Trade surplus not the result of exchange rate, government says
Published on Tuesday, Mar. 16, 2010 11:56AM EDT
China pushed back on Tuesday against mounting U.S. criticism of its currency policy, saying that the country’s trade surplus was not the result of its exchange rate and warning the U.S. not to “politicize” the issue.
“The trade imbalance is not something that the exchange rate can resolve and politicising exchange-rate issues is counterproductive to global efforts in tackling the financial crisis,” said Yao Jian, spokesman for the Chinese commerce ministry, at a briefing.
He was speaking the day after more than 100 members of the U.S. Congress signed a letter calling on the Obama administration to label China as a currency manipulator, an indication of the rising pressure in the U.S. to take a tougher line with China.
"The impact of China's currency manipulation on the U.S. economy cannot be overstated. Maintaining its currency at a devalued exchange rate provides a subsidy to Chinese companies and unfairly disadvantages foreign competitors," the letter said.
Trade surplus not the result of exchange rate, government says
Published on Tuesday, Mar. 16, 2010 11:56AM EDT
China pushed back on Tuesday against mounting U.S. criticism of its currency policy, saying that the country’s trade surplus was not the result of its exchange rate and warning the U.S. not to “politicize” the issue.
“The trade imbalance is not something that the exchange rate can resolve and politicising exchange-rate issues is counterproductive to global efforts in tackling the financial crisis,” said Yao Jian, spokesman for the Chinese commerce ministry, at a briefing.
He was speaking the day after more than 100 members of the U.S. Congress signed a letter calling on the Obama administration to label China as a currency manipulator, an indication of the rising pressure in the U.S. to take a tougher line with China.
"The impact of China's currency manipulation on the U.S. economy cannot be overstated. Maintaining its currency at a devalued exchange rate provides a subsidy to Chinese companies and unfairly disadvantages foreign competitors," the letter said.