China warned the U.S. against trade protectionism hours after the Senate passed a proposed bill that would slap tariffs on Chinese goods over its perceived under-valued currency.
In a written statement posted on its website, China's Foreign Ministry urged Washington to oppose the bill.
“This proposed bill in the name of so-called ‘exchange rate misalignment’ is protectionism and a serious violation of World Trade Organization rules,” Ma Zhaoxu, a foreign ministry spokesperson, said in the statement. “This won’t solve America’s own economic and employment problems.”
China's central bank also issued a statement Wednesday defending the value of the country's currency, known as the yuan or renmenbi.
“The American Senate has repeatedly ignored the facts, has constantly pestered [China] on the renminbi exchange issue in order to find an external excuse for its own malaise,” the statement said.
The legislation, which could penalize any country found to be holding the value of its currency down to create an unfair trade advantage, is largely targeted at China, which is believed to under-value its yuan by upwards of 25%.
The bill would still need to pass the House where it faces stiff opposition from Republican leaders wary of a trade war and harm to U.S. business interests in China. The Obama administration has not demonstrated support of the legislation either.
The American Chamber of Commerce in China also urged lawmakers to oppose the legislation, saying the U.S. would benefit more by pressuring Beijing to open its domestic market to American firms.
RELATED:
Senate OKs sanctions for nations holding down currency values
Senate vote on China bill sparks procedural showdown
China criticizes Senate bill aimed at undervalued currencies
--Benjamin Haas
Photo: China's currency controls have been blamed for an unexpectedly large global trade surplus. Credit: How Hwee Young / EPA
No comments:
Post a Comment