Skip to comments.China warns US against making yuan dispute a 'scapegoat' for a flagging economy
Posted on 10/15/2010 10:00:21 AM PDT by traumer
China has again warned the US not to use the dispute over the value of the Chinese currency, the yuan, as a scapegoat for its high unemployment and flagging growth prospects.
The artificially weak Chinese currency has become a political issue in the US where it is blamed for giving Chinese exporters an unfair advantage at the cost of US jobs. Photo: Getty
The remarks from Chinas ministry of commerce came hours before the US was due to release a report on whether it considers China a currency manipulator as fears grow that tensions over the currency could lead to a protectionist trade war.
The report has been repeatedly delayed despite a growing chorus of demands from US legislators and union bosses for the Obama administration to take tougher action against Chinas alleged trade distortions.
However Yao Jian, a Chinese Ministry of Commerce spokesman, rejected US complaints as unfair. It's totally wrong to blame the yuan for the Sino-U.S. trade imbalance, he said, The Chinese yuan shouldn't be a scapegoat for the U.S.' domestic economic problems.
The artificially weak Chinese currency, which some analysts say is trading up to 25pc below its true market rate, has become a growing political issue in the US where it is blamed for giving Chinese exporters and unfair advantage at the cost of millions of US jobs.
However China has repeatedly said it cannot afford the costs of substantially re-valuing the yuan at a time when global demand for its exports remains weak and the recovery from the global recession remains fragile.
Job losses would hurt the Chinese economy and domestic consumption. A relatively large yuan appreciation would definitely hurt Chinese exports, so a stable yuan exchange rate is needed for domestic consumption and the stability of the world economy," Mr Yao added.
(Excerpt) Read more at telegraph.co.uk ...
The last thing we need to do is make China a scapegoat. This is the fault of those idiots who have blown more money than they could afford to do so. Another last thing we need is the Chinese responding ot accusations made by Obama by starting a Trade War. We have enough problems.
Borrowers never want to start a trade war with their lenders. Consumers don’t want to start trade wars with producers. The former tend to starve well ahead of the latter.
Isn’t this a case of the pot calling the kettle black?
If China is a currency manipulator for artificially weakening the value of their currency. Then how is the U.S Treasury not doing exactly the same thing via quantitative easing aka....running the printing presses?