China says US is using currency as a scapegoat

Monday 18th October, 2010


Big News Network.com Saturday 16th October, 2010

A spokesperson for the Chinese Commerce Ministry alleges the US is using the yuan as a scapegoat, despite ongoing criticism of China's restrictive financial system.
China has told the United States not to make the yuan, their national currency, a scapegoat for domestic problems with the US dollar, in a new twist to the deteriorating trade conflict between the world’s two biggest economies.

Yao Jian, a spokesperson for the Chinese Commerce Ministry made the comments just hours before the United States decides whether to formally label their biggest trade competitor a currency manipulator due to allegations of China artificially depressing the value of the yuan.

Jian accused the US government of looking only at China’s trade surplus as evidence of currency manipulation, rather than considering whether that trade surplus was the result of China’s legitimate supremacy over the US in the current financial climate.

China offers a cheaper alternative to most developed countries, which makes it difficult to compete with the export giant, especially in a financial climate in which businesses and governments are seeking to save money wherever they can.

China remains under pressure from major economies such as Japan and the US to enact faster currency reforms in the Asian powerhouse, which is renowned for a financial system that remains restrictive compared to other major economies.

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