China digs in heels on yuan as U.S. raises pressure

China digs in heels on yuan as U.S. raises pressure

www.reuters.com

China said on Wednesday it "could not be any clearer" in its repeated commitment to a stable exchange rate after the U.S. Congress threatened to levy duties on some Chinese exports unless it revalues its currency.

The U.S. Senate bill, a rare show of bipartisan accord, adds to pressure on Obama, whose administration must decide whether to label China as a currency manipulator in a semiannual Treasury Department report due on April 15.

(visit the link for the full news article)

The U.S. Senate calling China a currency manipulator.....??

Isn't that the pot calling the kettle black!!

Because the U.S. is having a trade deficit with China, they should raise the value of their currency to solve the problem??

Doesn't the U.S. have trade deficit with almost every country right now?? Why not raise the value of every currency? It would solve a lot of problems...right??

I believe China is gonna play this one out with patience and patience is not what the U.S. had in mind....

Prepare for a Trade War....

Peace

www.reuters.com
(visit the link for the full news article)

reply to post by operation mindcrime


They are called a currency manipulator for a precise reason, namely that China has it's currency fixed at a certain price compared to the dollar, giving it an unfair trade advantage because the dollar can be freely exchanged whereas the Yuan cannot. Manipulating a currency in a fair, open market is different to artificially telling the markets what they can trade at.

I actually back the US on this, it's high time China played by the rules the rest of us have to.

reply to post by operation mindcrime


"The U.S. Senate calling China a currency manipulator.....??

Isn't that the pot calling the kettle black!!"

Wow, I thought the exact same thing you did while I was reading that. Who are we to tell them what to do with their own money. We can`t even take care of our own money, let alone tell another country how to handle theirs. What`s the matter, can`t our government stand the fact that other countries are sick and tired of us ruining the rest of the worlds economies?

reply to post by operation mindcrime


Trade War???? China doesn't want to go down that path and neither does the U.S.

reply to post by ventian


Yeah, i agree they both do not want to go down that road..

Chinese Premier Wen accused the U.S. of trying to boost exports by trying to intentionally devalue the dollar, and goes on to say that the U.S. is already on murky waters for selling weapons to Taiwan and meeting the Tibetan Dalai Lama.

Mr. Wen says that, "These moves have violated China´s territorial integrity. The responsibility does not lie with the Chinese side but with the United States."

Premier Wen said the US-China partnership "makes both sides winners while a confrontational one makes both sides losers." As the only major economy still growing and as the U.S.´s largest creditor, China is no longer afraid to talk tough with the U.S.

China Slams U.S. on Currency Manipulation Allegations

But somebody seems to be steering that way......

Peace

reply to post by stumason


Mr. Wen's take on the situation....

"I can understand that some countries want to increase their share of exports," Mr. Wen said, in an apparent reference to the Obama administration´s goal. "What I don´t understand is the practice of depreciating one´s own currency and attempting to press other countries to appreciate their own currencies solely for the purpose of increasing one´s own exports," he added. "This kind of practice I think is a kind of trade protectionism."

He does seem to have a point as well....

I agree, it's a dirty game but tensions are definitely mounting.

Peace