Wednesday, October 5, 2011

China warns US against trade war

Chinese Foreign Ministry spokesman Ma Zhaoxu

Source: Press TV

China has warned that a US Senate bill to punish Beijing for its alleged “currency manipulation” will block Sino-American trade ties.

Chinese Foreign Ministry spokesman Ma Zhaoxu urged certain US Senators in a statement on Tuesday to "rationally savvy the Sino-US trade cooperation, which is mutually beneficial in nature, and stop to pressure China by using domestic law-making means of the United States."

The Chinese spokesman added that the US move has violated the rules of the World Trade Organization.

The US Senate advanced the bill by a 79-19 vote on Monday. China and the US business community, however, oppose the decision which awaits a final passage this week.

Fifty-one US business groups have recently written a letter, warning the legislation will be “counterproductive.”

The bill allows retaliatory duties on Chinese goods in case Beijing continues to artificially keep its currency down and therefore its exports cheap.

Senate Majority Leader Harry Reid said China's currency practices have cost the Americans more than a million jobs.

“China's deliberate actions to devalue its currency give its goods an unfair competitive advantage in the marketplace,” Reid said.

"Their goods do not deserve that. That's not fair. It hurts our economy. It costs American jobs," Reid added.

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