China rejects US accusations on yuan

Source: Press TV
http://www.presstv.ir/detail.aspx?id=130062§ionid=3510203



World Trade Organization rules do not support US attempts to include Beijing's exchange-rate policy in trade investigations related to government subsidies, China says.

US attempts to punish Beijing unless it allows the yuan to rise, would not be supported by the World Trade Organization (WTO) rules, Yao Jian, spokesman for China's Ministry of Commerce, said.

"It's against facts and lacks the support of WTO rules," China's commerce ministry spokesman told a news conference on Saturday.

"The WTO regulates trade policies, not financial or foreign exchange policies," he added.

US Treasury Secretary Timothy Geithner, under fire for delaying a Treasury report to Congress due in April that could have labeled China a currency manipulator, said Thursday that the yuan was an obstruction to the global rebalancing of economies.

According to legislation proposed by US Senator Charles Schumer, US companies would be allowed to seek import duties to compensate for an undervalued currency by labeling it as a subsidy.

Critics argue that the yuan is artificially undervalued, adding that such low rating keeps exports relatively cheap granting Chinese exporters an unfair advantage over their rivals.

Earlier in March, the Governor of the People's Bank of China, Zhou Xiaochuan, said his country would eventually shift away from its special exchange rate policy.