China rejects US pressure to revalue yuan

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Friction has grown between China and the US and other Western powers over Beijing’s stable currency policy. Critics of China’s forex policy say Beijing keeps the yuan’s value artificially low, making its exports cheaper. - Reuters photo

BEIJING: China urged the United States on Friday not to politicise a row over the value of its currency as it announced a top official would travel to Washington for talks on the issue and other trade disputes.

As trade tensions between the two powers rise, Beijing warned of a negative impact from pending US legislation that would impose tough new penalties on China if it failed to revalue its currency.

“We should take every measure possible to avoid politicisation of the issue and allowing emotion to come into the debate,” He Ning, a top ministry official overseeing US trade, told journalists.

“If there are any political factors added... it will make the whole situation complicated and affect negotiations and dialogue, which is not what we would like to see,” he said when asked about the legislation.

The legislation, which enjoys support from both sides of the US political divide, would punish currency manipulation as an unfair subsidy and could trigger retaliatory US actions.

China announced that Vice Commerce Minister Zhong Shan will visit Washington from March 24 to 26 to meet US lawmakers and officials at the US commerce and treasury departments as well as the US Trade Representative’s Office.

“This visit is an effort to consult and exchange views on the Sino-US trade balance, trade frictions and other concerned trade issues,” a ministry statement said.

Critics of China’s forex policy say Beijing keeps the yuan’s value artificially low, making its exports cheaper.—AFP


http://www.dawn.com/wps/wcm/connect/dawn...-030-za-05

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