Posted on 02/03/2005 6:10:26 PM PST by maui_hawaii
BEIJING : China said a threatened US bill giving it six months to revalue its currency, the yuan, would be the wrong way to handle the sensitive issue.
"We believe this is not a way to resolve differences," foreign ministry spokesman Kong Quan told a regular briefing.
"Every country's economic and financial policy are implemented and established based on the country's specific situation," he said.
A least a dozen US senators are said to have agreed to co-sponsor the bill which would give China "a window of 180 days" to revalue the yuan or face a 27.5 percent tariff on all Chinese manufactured goods entering the United States.
It is expected to be introduced into the US Senate as early as Friday.
A ranking state-employed economist said the government was unlikely to be intimidated by such a move.
"China doesn't have to change the yuan exchange rate under pressure from the outside," said Zhu Baoliang, a researcher at the State Information Center, an elite Beijing think tank.
"If the Chinese government wants to change its policy, it should be at a time when it's required by domestic needs," he told AFP.
"Personally I agree the yuan should change at a proper time but in accordance with the domestic economic situation, not because of international pressure," Zhu said.
The yuan, now fixed at 8.28 to the dollar, is kept in a narrow band by the People's Bank of China, the central bank. This level is considered too weak by many financial observers and made worse by recent weakening of the dollar.
The United States trade deficit with China is ballooning and may have hit 150 billion dollars last year or one-fourth the US deficit with all countries, analysts say.
"Ensuring and maintaining the rapid, healthy and stable development of China's economy helps not only China but also the mutually beneficial economic and trade cooperation with Asia and other countries in the world," Kong said.
China will send two senior officials to the G7 meeting in London this week but it is unlikely Beijing will make any major announcement on its fixed currency system, analysts say.
they are gonna play hardball:
http://www.bloomberg.com/apps/news?pid=10000085&sid=apHjcmFIRmoQ&refer=europe
repeal MFN for china now.
US should have introduced this bill years ago...
I agree. So, the United States has the right to impose a 30% tarrif on Chinese goods entering the United States.
Good link.
The WTO will whack us on the head for this, count on it.
You forgot. We are supposed to take one for the team. Their team that is...
Oh, the horror....
The WTO has no authority in and of itself.
Heat getting to them? Must be on the right track!
When it hits their interests we are supposed to be 'rational'. When they do things against our interests 'its their right' to do whatever it is.
Interesting. If the issue ends up as a wider international issue, the Euroweenies are going to back the US -- because they are getting screwed by the Chinese actions.
No, see #12.
I agree.
A need is a need. I say we satisfy our need.
I would think thats about right...
Personally, I don't know why we are doing this. If they want to subsidize the American consumer, then let them.
because we are exporting our industrial and technology base to them, and the jobs and tax base they provide, so they can produce the finished goods they export back to us.
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