China Will not Succumb to US Pressures on the Country's Currency: Chinese Official.

 

 

March 25, 2010 (Hamsayeh.Net) - China said the United States should stop using its currency revaluation issue as a political leverage against Beijing.

 

China’s vice commerce minister Zhing Shan on a visit to the US for a meeting with the US treasury secretary Timothy Geithner, told reporters that China will not yield to constant US pressuring to revalue its currency the yuan.

 

The US has been calling on China to allow the yuan increase in value, which could help US competitiveness in international markets. China says the yuan is ideally valued at this time and there’s no need to manipulate its true value against the US dollar.

 

US manufacturers claim they are losing many jobs in North America because of China’s massive industrial prowess. They say it is unfair for China to treat its biggest market with such a policy as to hold the value of yuan artificially low.  

 

The US treasury secretary following a meeting with the Chinese official said he believed that China should gradually increase the value of its currency against the US dollar over time, but admitted the US is not in a position to force China to make that change right away.

 

The US congress would make a decision in April whether to label China as a currency manipulator or not. Such a designation could lead to a full-scale trade war between the two countries.