Japan calls on China to raising the yuan

Source: PressTV
http://www.presstv.ir/detail.aspx?id=122332§ionid=3510213


Japan has called on China to let yuan strengthen amid accusations that Beijing keeps its currency artificially low to boost exports.

During a meeting with Chinese Premier Wen Jiabao in Beijing, Japanese Finance Minister Naoto Kan asked China to make a "wise decision" on its foreign exchange policy.

"The issue of the yuan, currencies and excess liquidity are related to each other. I told him that," Kan told reporters after the meeting.

But "I didn't say anything on what China should do or shouldn't do" about the yuan, he said.

Some of the Group of Seven industrialized states are ratcheting up pressure on the world's second economy to increase the value of the yuan in a bid to prevent what they allege is unfair export advantage.

"With regard to Japan-China trade, Japan has no major problems... but relations vary with other countries, so I told him that I expect China to make a wise decision as it has done so," he said.

In Washington, the Obama administration also made a same appeal, and there are moves to apply punitive measures against China to force it to increase the yuan's value. However, Naoto Kan described pressurizing China as counterproductive and said: "I'm also aware of the problems in the US Congress, but giving the perception of applying pressure isn't necessarily a good thing."

Treasury Secretary Timothy Geithner said that the United States wants China to quickly raise the value of the yuan.

China, US lock horns over yuan value

Source: PressTV
http://www.presstv.ir/detail.aspx?id=121190§ionid=3510213


The Chinese government has once again warned the United States against politicizing the debate on the value of the Chinese currency, the yuan.

The Chinese Commerce Ministry says that a pending US bill concerning the yuan is complicating the situation.

The bill has bipartisan support in the US House of Representatives. US lawmakers say China is holding the value of the yuan low to give Chinese goods an artificial competitive edge in the exports markets, while Beijing says the yuan has helped the global economic recovery.

Should the proposal be approved, it will impose tough new penalties on China if Beijing fails to revalue its currency.

The currency debate has caused tension between the US and China, whose relations have been deteriorating over a number of issues.

Recently, China reduced its military cooperation with Washington after the United States sold USD 6.4 billion worth of arms to Taiwan.

Last week, Beijing accused Washington of hypocrisy in dealing with the issue, spelling out a list of US human rights abuses.

The official US government reports on human rights are widely believed to be unreliable and highly politicized aimed at punishing nations that do not share US political and strategic views, while ignoring abuses committed by US client states.