China warns U.S. "unwise" to focus on yuan

BEIJING Tue Sep 21, 2010 7:20am EDT

BEIJING (Reuters) - It is not wise for the United States to point its finger at the yuan's exchange rate and demand appreciation, the Chinese foreign ministry said on Tuesday.

In a statement on its website, the ministry said that the United States should focus on its own economic recovery and work to maintain stability of its own currency.

The statement added that expectations for yuan appreciation were not strong, and that a stronger currency would do little to resolve the Sino-U.S. bilateral trade imbalance.

The yuan has rallied for nine straight days amid strong criticism from the United States about China's currency policy.

(Reporting by Kevin Yao and Aileen Wang; Writing by Simon Rabinovitch; Editing by Benjamin Kang Lim)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (4)
China_Lies wrote:
china’s arrogance is disgusting!

china is in no position to council the west. Maybe when china begins to act like a responsible power will the world pay attention to them.

china knows it is manipulating the yuan, and they are only trying to buy as much time as possible to continue their mercantilist economic policies.

Eventually, china’s trading partners will slow their china strategy because of all the negative aspects of doing trade with china…..what a headache!

I would rather pay a much higher price and deal with a rational trading partner, than I would paying a cheap price, for cheap products, from cheap trading partners.

Eventually, the low-cost manufacturing will move to India, or some other low-cost manufacturing center. At that time china’s economy will have no competitive advantage. I am eager to see who is crying then! :-)

Sep 21, 2010 1:22pm EDT  --  Report as abuse
hems88 wrote:
You must be living in your own world then. If you actually kept up with the world as it is today, you would have noticed that low-cost manufacturing has already moved to countries like Vietnam and India.

China is no longer an under-developed country and manufacturing is no longer low-cost there as it used to be. Not so long ago, there were massive strikes there that forces multiple companies to like raise wages substantially.

You fail to understand that China actually owns over half of the US deficit in bonds and just by reducing the amount they buy, they can hurt the american economy way more than a simple currency manipulation would be. We would be talking about another Great Depression conditions here. Granted, such a move would also damage China substantially, but if we continue to confront them and try to corner them, they may just be desperate enough to do that. And one thing is certain: China will be survive it in the end. The question is whether the US will.

Sep 22, 2010 4:34am EDT  --  Report as abuse
Haphzardus wrote:
very well said hem88. the person above you must be either quite clueless and quite ignorant to think that what the US administration wanted was rightly deserved.

i’m sick of the US administration being so dead cockily arrogant. i have never seen anyone ‘beg’ and ‘plead’ in such a provocative and bossy manner. they make it as though they are the only authority in the world and everything they say rightly stands.

the fact is that they can’t get over the fact that China’s on a healthy road to threaten and overtake the botched and crippled US economy; that in this period of hyper-development, the exporting power, the market value, outside vested interest are on high; while labour and standard of living remains reasonably cheaper and lower.

…..

Sep 23, 2010 8:42pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.