Beijing on Currency manipulation and the US Congress

[In Other News]

Source: GlobalPost

BEIJING, China – Gloom and doom continue to pour from Beijing over passage by the U.S. Senate of a measure that could punish China for currency manipulation.

Yet the real impact of the political spat and potential for a serious trade war are far from certain.

Chinese officials have warned that the bill, which appears unlikely to make it through the House of Representatives, would cost American jobs and spark a trade war between the two countries. American lawmakers, tired of the slow pace of China’s currency liberation, are seeking a change in the system that many believe gives China a trade advantage by keeping its yuan pegged below its true value.

“It is a serious breach of WTO rules, which cannot solve the U.S.’s own economic and employment issues, and will ... seriously interfere with Sino-U.S. economic and trade relations,” China Foreign Ministry spokesman Ma Zhaoxu said this week.

Read more: http://www.globalpost.com/dispatch/news/regions/asia-pacific/china/111014/currency-manipulation-china-senate