China vows to hit back if targeted by U.S. on yuan

Reuters ^ | 03/21/10 | Langi Chiang and Ken Wills

[TigerLikesRooster]

China vows to hit back if targeted by U.S. on yuan

By Langi Chiang and Ken Wills

BEIJING (Reuters) – Beijing will retaliate if the United States declares China a currency manipulator and imposes trade sanctions, Commerce Minister Chen Deming said on Sunday, firing the latest salvo in a spat over the value of the yuan.

Chen again accused Washington of politicizing the issue ahead of an April 15 deadline for the U.S. Treasury to rule whether China is unfairly holding down its exchange rate to gain a competitive edge in global markets.

"The currency is a sovereign issue and should not be an issue to be discussed between two countries," Chen told the China Development Forum.

"We think the renminbi is not undervalued, but if the U.S. Treasury gave an untrue reply for its own needs, we will wait and see. If such a reply is followed by trade sanctions, I think we will not do nothing. We will also respond if this means litigation under the global legal framework," he added.

Chen did not specify how Beijing might respond.

[TigerLikesRooster]

If it is only Obama who decided to pick a fight with China now, I could blame it on his stupidity. However, Krugman is on it, too. Then there are Dem Senators and MSM. What concerns me is that they don't seem to have a credible strategy. It sounds as though they were just barking mad out of desperation. These guys are losing it.

[TigerLikesRooster]

P!

[cavador]

This is going to be a nightmare that could very well turn the U.S.A. against it ally,Australia because the only product we have here in Australia all have a "Made in China" sticker on it.Does this mean the U.S. will put trade sanctions on Australia as well?(Because we are seen to be supporting the Chicoms by buying their products)

[autumnraine]

They bank their entire strategy of ‘pulling us out of the recession’ by having others (mainly China) buy our debt and then get us into a trade war with them?

Yeah, this is intentional. Obama is committing treason every damn day and has the majority in the Houses right along with him.

[Travis McGee]

The biggest debtor in the world is kicking the creditor he needs for tomorrow’s dose of credit.

[DUMBGRUNT]

Sadly the value of my retirement funds are supported by the Chinese and at the same time the president of the United States tries to inflate his way out of trouble.

[Eric in the Ozarks]

Yup.
Ditto.

[artaxerces]

This government must be the most incompetent in generations, if not centuries.

We are in this crisis because of our own government’s lax policies and corporations’s greed. To resolve the fundamental issues of national insolvency requires working hard and building real wealth.

Our government seems instead to want to coerce China(and the rest of the productive world) into ponying up more money to fund our programs. Where is the fairness in all of this?