(Corrects to "exchange" rate in penultimate paragraph)
BEIJING Oct 4 China's foreign ministry said it
"adamantly opposes" a bill being pushed by the U.S. Senate to
allow the United States to impose duties on countries that
undervalue their currencies.
In a statement posted on China's official government website
(www.gov.cn) on Tuesday, foreign ministry spokesman Ma Zhaoxu
warned the United States not to "politicise" currency issues.
He said the United States was using currency as an excuse to
adopt protectionist trade measures that violated global trading
"By using the excuse of a so-called 'currency imbalance',
this will escalate the exchange rate issue, adopting a
protectionist measure that gravely violates WTO rules and
seriously upsets Sino-U.S. trade and economic relations," he
said. "China expresses its adamant opposition to this."
Ma Zhaoxu repeated Beijing's position that it will continue
to gradually reform its currency policy, "strengthening the
flexibility of the renminbi exchange rate."
He urged U.S. legislators to "proceed from the broader
picture of Sino-U.S. trade and economic cooperation" and
Senators voted on Monday to open a week of debate on the
Currency Exchange Rate Oversight Reform Act of 2011, which would
allow the U.S. government to slap countervailing duties on
products from countries found to be subsidising their exports by
undervaluing their currencies.
China has routinely denied claims by the United States that
the undervaluing of the renminbi has undermined the U.S.
"It is widely understand that the renminbi exchange rate is
not the cause of China-U.S. trade imbalances," Ma said.
China's central bank said in a statement that the bill
failed to address the underlying issues in the U.S. economy.
"The yuan bill passed by the U.S. senate will not solve its
problems, such as insufficient savings, high trade deficit and
high unemployment rate, but it may seriously affect the whole
progress of China's reform of its yuan exchange rate regime and
may also lead to a trade war which we would not like to see."
It added that Chinese inflation had already pushed the real
yuan exchange rate further "towards the equilibrium."
Meanwhile, China's Ministry of Commerce said in another
statement that any move by the United States to force the yuan
to appreciate would undermine joint efforts to revive global
(Reporting by Chris Buckley, Aileen Wang and David Stanway;
Editing by Jonathan Thatcher)