China warns of trade war if U.S. bill passes

China warns of trade war if U.S. bill passes

BEIJING (Reuters) - An angry China warned Washington on Tuesday that passage of a bill aimed at forcing Beijing to let its currency rise could lead to a trade war between the world's top two economies.

China's central bank and the ministries of commerce and foreign affairs accused Washington of "politicising" currency issues and putting the global economy at risk after U.S. senators voted on Monday to start a week of debate on the bill.

The response suggested China sees a greater risk from the proposed bill than it has in the past when U.S. lawmakers attempted to put forward similar legislation to speed up the pace of appreciation in the yuan, or renminbi.

Beijing made similar remarks last year after the House of Representatives passed a currency bill that later failed to make any further progress in Congress.

Tuesday's coordinated salvo and the central bank's warning of a trade war and a slowdown in China's exchange rate reforms indicated Beijing was taking the latest currency bill more seriously.

"It is very rare for three different ministries of the country to refute something so quickly and strongly, showing how deeply the Chinese government is concerned about the yuan bill," said Wang Zihong, a researcher at the China Academy of Social Sciences, a top government think tank.

Click link for remainder of article...

This is been done in the past although its never been a serious effort by Congress.... until now.

China beleives it can join the WTO and use their own rules instead of the WTO rules. Chinas trade defecit with the US is massive -

Source




They are continually and purposely deflating their currency to keep the imbalance. This keeps there prices low, making their manufactured goods less expensive compared to other countries, which in turn allows them to dominate the global market.

I think its about time the US Congress actually represented the American People instead of a foreign government / business lobbyist.

Not only would I like to see this go through, I would like to see other sanctions taken to force China to play by the same rules the rest of the world plays by.

I've always found Chinese actions interesting. They want everyone to accept their "style" while they demand other countries capitulate to that style. The US has filed numerous claims with the WTO over violations by China. Apparently since the WTO is dragging its feet, much to the enjoyment of China, the latest action by Congress has them miffed.

The Us is not the only country to have these types of discussions. The EU and several Southeast Asian countries also are having the same issues.

I say full steam ahead...


Then there is this -
China or the US? Make your choice

On Monday the US Senate was expected to pass a bill allowing for the imposition of tariffs on Chinese goods. Even if the protectionist drive in America now pauses for a while, this confrontational mood in the US poses a dilemma for China’s neighbours. China is now the largest trading partner for Japan, India, Australia, South Korea and most of the nations of south-east Asia. But these countries still have their most important military relationship with the US. How long can their economic and strategic interests point in different directions?

Not for long, if one is to judge by an editorial in the People’s Daily last week. The official newspaper of the Chinese Communist party took aim at “certain countries” who “think as long as they can balance China with the help of US military power, they are free to do whatever they want”.

The article was probably provoked by a statement from Japan and the Philippines, the previous day, in which the two countries promised to boost naval co-operation and implicitly disputed China’s extensive territorial claims in the South China Sea. But China’s warning could equally have been aimed at Vietnam, India, South Korea, Australia or Taiwan – all of whom have moved over the past year to strengthen military ties with America.

Apparently its coming down to China forcing countries to choose a side.....



Thoughts?

I think this was covered (being) in another post

Sorry if I am wrong but....

Hate to say it but it's pretty much over if they declare economic warfare (not that they havent been doing it for years), But it will be bad...no more plastic furniture.....

Originally posted by KingAtlas
I think this was covered (being) in another post

Sorry if I am wrong but....

If you have a link post it in here if its the same. This is from Reuters and was posted "7 mins" ago when I brought it over here.

reply to post by sir_slide


I dont think they would. They are having massive internal issues as it is, they are just better at controlling the media since they own it.

With the world economy the way it is Chinese businesses have suffered since no one is buying products like they used to.

No business = no work for chinese citizens = pressure on the government.

Good good USA is finally doing the right thing.Now the chinese might decide to collapse USA and seize all american assets in China as a result. Hell even american weapons are dependent on chinese components

www.libertynewsonline.com...

Hell will america be even able to launch its trident missiles or are they also made in china components assembled in usa type.


www.darkgovernment.com...

what will happen when your president decides to send F-22 Craptor to attack China?

Ans: they will crash in Chicom land with fake chinese chips causing them to fall apart .win win for china anyways. China will get more american technology for FREE

"Jeffrey Pelt: Mr. Ambassador you have nearly a hundred naval vessels operating in the North Atlantic right now! Your aircraft has dropped enough sonar buoys so that a man could walk from Greenland to Iceland to Scotland without getting his feet wet! Now shall we dispense with the bull

are those sonar buoys made in china too?

Screw China. They have been devaluing their currency at the detriment of the rest of the world for decades and it has got to stop. If they want to play dirty, we will raise tariff's and import taxes...that is, if our government has the balls to actually do this instead of backing down...again. this is not the first time this has been proposed.

Well my bad. I coulda swore I just read a thread about this. Maybe deja-vu, or from when I was watching business channel. Weird.

I guess I should add soemthign to the conv.

As for the Trade war, I don't think either economy can afford to have such a "war". Both economies are in a balancing act to keep afloat.

It seems like animal puffery, both sides want to appear stronger than the other, even though the numbers don't lie.

With the problems in the eurozone, it would be childish to try. Although, I can see alot of people making alot of money off of it. If this happened it would unstabalize the market creating opportunities of large profit potential, especially in the commodoties market.

reply to post by KingAtlas


Your not mad, it was in the Global Meltdown forum and ATS allows the same topic to be posted in different forums

Yeah I just saw it haha.

PHEW I was worried there for a minute.

reply to post by Xcathdra


What I am about to say is not directed at the Chinese "people" because they are just like us, obviously!

However, I see this Bill as a very positive move by the U.S. In the West we really need to start putting our own economies first and not pandering to international pressures.

I don't like the way that China does its thing. As a society their human rights record is really bad. We have nothing to learn from them and we should just keep a healthy diplomatic dialogue, but we need to do what is right for us. We are a great civilization, very advanced as societies in U.S and UK. We are right for us, they are not.

I neither appreciate their influence or their pressure. The U.S is my star and always shall be.

Originally posted by sir_slide
Hate to say it but it's pretty much over if they declare economic warfare (not that they havent been doing it for years), But it will be bad...no more plastic furniture.....

I don't agree. It is necessary and the U.S needs to assert itself. Have you not seen the economic decline in the West??? Something is not right. China's economy has a lot to do with our woes and we need to act. It will work. A trade war would be a good thing and the U.S and U.K could seize a badly needed opportunity to redevelop our own economies.

I've had enough of buying Chinese goods. The quality is terrible. America and U.K had great names for the quality of their products.

Check for Bob Dylan's "Union Sundown" song on his "Infidels" album. A great piece of economic commentary.

Originally posted by USAisdevil
Good good USA is finally doing the right thing.Now the chinese might decide to collapse USA and seize all american assets in China as a result. Hell even american weapons are dependent on chinese components

www.libertynewsonline.com...

Hell will america be even able to launch its trident missiles or are they also made in china components assembled in usa type.

www.darkgovernment.com...

what will happen when your president decides to send F-22 Craptor to attack China?

Ans: they will crash in Chicom land with fake chinese chips causing them to fall apart .win win for china anyways. China will get more american technology for FREE

"Jeffrey Pelt: Mr. Ambassador you have nearly a hundred naval vessels operating in the North Atlantic right now! Your aircraft has dropped enough sonar buoys so that a man could walk from Greenland to Iceland to Scotland without getting his feet wet! Now shall we dispense with the bull

are those sonar buoys made in china too?

edit on 4-10-2011 by USAisdevil because: (no reason given)

Well if it is true that the U.S relies on China for arms components then that is a very silly weakness by U.S politicans for playing into their hands like a "whore". We need to empower ourselves now and get a little bit stronger instead of being manipulated by a monster State that is feeding off us while our influence dwindles away in the world. Need to think down the line a little; where this current craziness will lead us fifty or a hundred years from now and the consequences of allowing other influences in that are far more barbaric than our own.

Where are the astute and cunning Diplomats? My G! We've been sold out so many times.

Whoa whoa whoa

China's economy is not at fault for the decline of the american economy.
It's the deregulation of the financial sector.

The U.S. is to blame for it's own problems, it created its own demise.
All those bill's passed thought congress and the american public let it happen.
No one got upset until everything fell apart.

China is a growing economy and it makes sense for them to developpe their industrial sector, the problem is that the U.S. didn't focus on the technology and inovation sector. It could have been a really nice transition and it would have mean a stronger economy and better jobs.

What happened was that instead fo doing this, they focused on the financial sector. Which imploded because lobbyist pushed deregulation, and when obama came in he kept all the same people in the same jobs and called it change.

the american people should have revolted. Don't blame a skapegoat thats just bull.

Originally posted by DerbyCityLights
Screw China. They have been devaluing their currency at the detriment of the rest of the world for decades and it has got to stop. If they want to play dirty, we will raise tariff's and import taxes...that is, if our government has the balls to actually do this instead of backing down...again. this is not the first time this has been proposed.

Agreed!!

They have been cooking their books for the LONGEST. Enough is enough.

End this nonsense and end free trade in favor of FAIR trade.

Originally posted by KingAtlas
Whoa whoa whoa

China's economy is not at fault for the decline of the american economy.
It's the deregulation of the financial sector.

The U.S. is to blame for it's own problems, it created its own demise.
All those bill's passed thought congress and the american public let it happen.
No one got upset until everything fell apart.

China is a growing economy and it makes sense for them to developpe their industrial sector, the problem is that the U.S. didn't focus on the technology and inovation sector. It could have been a really nice transition and it would have mean a stronger economy and better jobs.

What happened was that instead fo doing this, they focused on the financial sector. Which imploded because lobbyist pushed deregulation, and when obama came in he kept all the same people in the same jobs and called it change.

the american people should have revolted. Don't blame a skapegoat thats just bull.

I certainly do not blame them as a scapegoat. They are just looking out for themselves. However, we live in a dog eat dog, survival of the fittest world. Once a State develops economic superiority and influence then those influences will have an effect on our daily lives. Really, it is the cultural influences that bother me, in terms of law and human rights. Are you understanding what I mean by that? If economic superiority happens then all other areas will be influenced. You know the saying "Money makes the world go round". It shouldn't, but it does and that is the rule of this game.

The freedoms we have in the West are a true Phenomenon in this world. I will fight tooth and nail to keep them. I don't want the mass, robotic, machine like collective "Borg" mentality of Communism and Marxism. It is a monster. A Godless monster!

Yes I understand where you are coming from, but look at it from the outside aswell.

It's like putting dog food in front of a dog, then blaming him for eating it.

I know communism isn't a good system, but neither is democracy.
When 51% of the people control how the other 49% live, it's not that much better.
But gotta love the illusion.

And when you really break it down it's more like 35% for the country controls the vote.

I am not saying you should become communist, i understand it is a detrimental system.

But what I am saying is that if people don't pay attention to what the government is doing and say something as it happens, why complain and look at others when everything falls apart.

-edit- I was just reminded of how when america was first being created, they thought their system was the best, and that the Native americans were savages and Godless monsters... how things have changed...
These bills passed through congress.

The government wants their people looking outward, gotta have an enemy to blame. The way they run their country doesn't matter is yours is falling apart.

China's economy isn't that strong anyways. They are having their own troubles.

reply to post by Xcathdra


Great, because I remember when furniture use to be of great quality and lasted for generations, so perhaps the whores in our congress will start doing something to boost productivity in the US, but as usual they probably just increase the imports from some where else.

I tell you our nation politicians are nothing but whores.

Originally posted by KingAtlas
Yes I understand where you are coming from, but look at it from the outside aswell.

It's like putting dog food in front of a dog, then blaming him for eating it.

I know communism isn't a good system, but neither is democracy.
When 51% of the people control how the other 49% live, it's not that much better.
But gotta love the illusion.

And when you really break it down it's more like 35% for the country controls the vote.

I am not saying you should become communist, i understand it is a detrimental system.

But what I am saying is that if people don't pay attention to what the government is doing and say something as it happens, why complain and look at others when everything falls apart.

-edit- I was just reminded of how when america was first being created, they thought their system was the best, and that the Native americans were savages and Godless monsters... how things have changed...
These bills passed through congress.

The government wants their people looking outward, gotta have an enemy to blame. The way they run their country doesn't matter is yours is falling apart.

China's economy isn't that strong anyways. They are having their own troubles.

edit on 4-10-2011 by KingAtlas because: added

I absolutely agree with everything you have written here.

I just wish that at the top there was the will to build and progress, to have pride in one's civilization.

I amazed as I have got older just how much my attitudes have changed. I used to be such a "hippy". With experience of this world and seeing reality at work I now comprehend that we have to meet might with might sometimes.

I go with Winston Churchill on the democracy angle; "Democracy is the worst form of government apart from all the others"; meaning the others are far worse but democracy is flawed, too.

For now it is all we have to go on. Personally, I'd love Jesus to come back in full might and do what Revelations says He will do, but we don't have that and we just have to blunder along as best we can.

I look at my life here in the UK and it is a free life. Something is still working. I am not rich by any means, but I am happy and I don't mind some people having more riches and influence than me. It is nice just to have layers and diversity in society. We are all different shapes and sizes, all have different incomes and interests. It's beautiful to behold. On that basis there is still something worth sticking up for and holding sacred.

In shorter words I aint got much money, but I got freedom. I cherish that more than money.