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US currency bill would see 'retaliation'

[ 2011-11-01 10:59]     字號 [] [] []  
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China's government will not sit by and will retaliate in kind against the United States if a measure targeting the yuan becomes law, said the Ministry of Commerce on Monday.

"The currency legislation proposed by the US would hurt the interests of both China and theUS. We are strongly against it," said He Ning, director-general of the Department of American & Oceanian Affairs with the Ministry of Commerce.

"If it eventually passes and becomes law, we cannot ignore it and will definitely reciprocate inkind," said He.

"We have readied ourselves with measures to deal with the possible outcome from the US", He said.

He's remarks came as Chinese President Hu Jintao is expected to attend the G20 summit onNov 3 and 4 in Cannes, France. At that meeting, leaders from the 20 nations are scheduled to discuss how to address issues including the global economic recession and the spreadingEuropean debt crisis.

Officials from the European Union said last weekend that they will pressure China on yuan appreciation during the Cannes discussions.

Earlier October, the US Senate passed legislation that would allow the US government to impose tariffs on Chinese goods to compensate for an allegedly undervalued currency.

The proposal will have to be approved by the House of Representatives and then signed by US President Barack Obama before it can become law.

Experts said the US is transferring its own economic problems to China by pointing to the nation's currency policies, especially as the 2012 US presidential election draws near.

China's yuan has so far appreciated 3.7 percent this year, and the nation continues to require efforts aimed at reducing inflation, Vice-Minister of Finance Zhu Guangyao said at a conference on Friday.

Zhou Xiaoyan, director of the Bureau of Fair Trade for Imports and Exports of the Ministry ofCommerce, said recently that a new round of trade protectionism targeting Chinese exports is rising.

On Friday, the US Commerce Department said it had found in a preliminary investigation thatChinese companies are dumping steel wheels, setting duties ranging from 110.58 to 193.54 percent.

Also in recent days, a group of US solar cell and solar panel makers filed a trade complaint against China, accusing the country of illegally dumping silicon solar cells and panels through massive subsidies.

(中國日報網英語點津 Helen 編輯)

US currency bill would see 'retaliation'

About the broadcaster:

US currency bill would see 'retaliation'

Emily Cheng is an editor at China Daily. She was born in Sydney, Australia and graduated from the University of Sydney with a degree in Media, English Literature and Politics. She has worked in the media industry since starting university and this is the third time she has settled abroad - she interned with a magazine in Hong Kong 2007 and studied at the University of Leeds in 2009.

 
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