China is against the bill passed by US Senate
BEIJING: On Wednesday the Chinese government said that the US Senate was trying to disrupt the recovery of world economy by passing a bill that will punish China for keeping its currency artificially low.
Opposition expressed by the central bank in Beijing to the bill by pushing the local currency lower defying Washington’s efforts to push the Yuan upwards.
US Senate passing a bill that would punish countries that subsidize their exports by maintaining an artificially low exchange rate.
It is clear China has lost the first round in what became a severe test of its influence over the political and trade fields in the US. Beijing is now trying to make a desperate attempt to get the US House of Representatives and president Barack Obama to block the bill.
The bill “will not solve US economic and employment problems and will only disturb efforts to promote world economic recovery,” Chinese foreign ministry spokesman Ma Zhaoxuin said.
He said, The move has sent the wrong signal in escalating trade protectionism, said Shen Danyang, spokesperson for the Chinese commerce ministry said. The US Senate has reversed world efforts to curb trade protectionism by using domestic legislation that seeks to threaten to punish China for its alleged currency manipulation.
On Wednesday the central bank in China guided its currency 0.5 percent below its daily reference rate, the maximum devaluation possible in one day. It said the Yuan “is gradually approaching a reasonable and balanced level.” The bank has strengthened the yuan by 30 percent since 2005, but this has not prevented the US trade deficit with China from widening, it said.
