* China urges U.S. not to politicise economic issues
* Yuan will be kept basically stable - MofCom spokesman
* China faces tough trade outlook in Q4 and Q1 2012
By Langi Chiang and Don Durfee
BEIJING, Oct 19 China's Commerce Ministry urged
the United States not to "politicise" economic issues on
Wednesday and said that legislation aimed at pressing China to
let the yuan rise faster violates international trade rules.
Last week, the U.S. Senate approved a bill to pressure China
to raise the value of its yuan against the dollar by allowing
U.S. companies on a case-by-case basis to seek countervailing
duties on goods from countries with an undervalued currency.
"The U.S. Senate forcing its trade partner to appreciate
currency via its bill seriously violates international rules and
deviates from U.S. international responsibilities," said
Commerce Ministry spokesman Shen Danyang, speaking at a monthly
press conference in Beijing.
"If the United States insists on doing things in its own
way, it will harm China-US relations and the long-term benefit
of people from the two countries. China will have to take
further actions," he added.
The currency bill is unlikely to become law, say analysts.
Still, President Barack Obama and key figures in his
cabinet, while stopping short of endorsing the currency bill,
have voiced clear sympathy with lawmakers' contention that China
undervalues the yuan to give its companies a price advantage in
China will also keep the yuan "basically stable", Shen told
"China will keep export-related policies basically stable,
including those governing tax rebate, trade credit, yuan
currency rate, cross-border yuan trade settlement and trade
Shen was cautious on China's exports, saying that the
country faces a tough trade outlook for the remainder of the
year and in 2012, a day after data showed economic expansion
slowed in the third quarter to its weakest pace in more than two
"China will face a tough export and import outlook in the
fourth quarter and next year, at least in the first quarter, as
the domestic and global environment changes, particularly as
unstable and uncertain factors increased in recent months," he
Chinese policy makers have watched the euro zone debt crisis
warily, worried that developments in China's biggest export
market could hurt its own economy.
Exports from China detracted from the economy's growth in
the first three quarters of this year. That was underlined by
September data showing exports growth to the euro zone more than
halved from August.
At the weekend, the G20 group of leading nations urged euro
zone leaders to resolve the debt crisis, which they said was
endangering the world economy.