Tuesday 4 October 2011

China says ‘firmly opposes’ US Senate currency bill


 China said Tuesday it “firmly opposed” a US Senate bill aimed at punishing Beijing for its alleged currency manipulation, which is expected to make its final passage later this week.


The bill  which comes 13 months ahead of US elections in which high unemployment is likely to be an issue  sets the stage for retaliatory duties on Chinese goods if Beijing is found to keep its currency artificially cheap.


“This bill uses so-called ‘currency imbalances’ as an excuse, escalates the issue of the exchange rate, implements protectionist measures… and seriously interferes with Sino-US trade ties,” foreign ministry spokesman Ma Zhaoxu said.


“China firmly opposes this,” he added in a statement.


The legislation — backed by both Democrats and Republicans in Congress, while opposed by Beijing and US business groups — cleared a procedural hurdle by a 79-19 vote on Monday, with final passage expected this week.A spokesman for China’s commerce ministry said US senators had “violated internationally accepted regulations by allowing a debate that seeks duties on Chinese imports,” the official Xinhua news agency reported.


Shen Danyang said the yuan exchange rate was not to blame for the current trade imbalance between China and the United States.

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