Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

The deleted tweets of Manuel Valls

Read more

BUSINESS DAILY

Google rivals Amazon with delivery drone tests

Read more

AFRICA NEWS

Ebola in Nigeria: First death outside of Lagos

Read more

AFRICA NEWS

Niger : Top Oppostion figure to be questioned in baby trafficking scandal

Read more

AFRICA NEWS

Liberia: President dismisses top officials who ignored call back

Read more

DEBATE

How to Stop Ebola: WHO Says Cases Could Exceed 20,000 (part 2)

Read more

DEBATE

How to Stop Ebola: WHO Says Cases Could Exceed 20,000

Read more

WEB NEWS

'Ice Bucket Challenge' angers anti-abortion activists

Read more

#TECH 24

Tomorrow's Transport Today

Read more

  • West backs Ukrainian claims of Russian incursion

    Read more

  • Obama has 'no strategy yet' on potential Syria strikes

    Read more

  • Mapping Ukraine: Canada and Russia in ‘tweet for tat’ row

    Read more

  • French businesses ‘hoping for a new Thatcher’

    Read more

  • Syrian refugees surpass 3 million, UN says

    Read more

  • Libyan PM resigns as Islamists set up rival administration

    Read more

  • UN says 43 peacekeepers captured in Golan Heights

    Read more

  • The deleted tweets of Manuel Valls

    Read more

  • Peru seizes record 6.5 tonnes of Europe-bound cocaine

    Read more

  • Pakistan army to mediate between PM, protesters

    Read more

  • PSG face Barcelona, Ajax in tough Champions League draw

    Read more

  • In pictures: Billions of locusts invade Madagascan capital

    Read more

  • Brad Pitt and Angelina Jolie say ‘I do’ in France

    Read more

  • Erdogan sworn in as Turkey's president

    Read more

  • Assad cannot be partner in fight against terrorism, says Hollande

    Read more

  • New Ebola case in Nigeria brings death toll to 1,552

    Read more

  • Video: 'Neither Baghdad nor the US can defeat the Islamic State'

    Read more

  • Platini will not run against Blatter for FIFA presidency

    Read more

  • Air France pilots announce week-long strike in September

    Read more

Business

US Treasury gets tough on China's currency policy

Text by News Wires

Latest update : 2010-09-16

US Treasury Secretary Timothy Geithner bluntly called on Beijing to let its currency rise against the yuan and stop putting obstacles in the way of international trade on Thursday.

AFP - US Treasury Secretary Timothy Geithner on Thursday said it was "past time" for China to lift barriers to US exports, as he faced angry lawmakers' demands for sanctions against Beijing.
  
Geithner abandoned his previously restrained approach to bluntly warn China it must let the yuan rise in value against the dollar to end trade distortions.
  
Facing November elections shaped by voter anger at the sour economy, US lawmakers are weighing bills that would slap sanctions on Chinese goods, amid accusations that Beijing keeps its currency -- and thereby its exports -- artificially cheap.
  
"It is past time for China to move" Geithner said, listing currency and other trade distortions as "core objectives" with China.
  
The US Treasury has consistently avoided labeling China a currency manipulator in its semi-annual reports to Congress -- a move which could set in motion a process for retaliation -- but has maintained that the yuan is undervalued.
  
The issue appeared to have been defused in June when China pledged in June to let the yuan trade more freely against the dollar, but Geithner has reiterated that he is still not satisfied with Beijing's moves to loosen its grip on the currency.
  
Despite the "important" pledge, Geithner said the Chinese currency's value was "essentially" unchanged in the last two years.
  
"China has continued to intervene in the exchange markets on a very substantial scale to limit the upward pressure of market forces on the Chinese currency."
  
Since then, it has appreciated about 1.6 percent against the greenback and traded at 6.7181, its highest level since June, on Wednesday.
  
China on Thursday warned outside pressure on Beijing to change its currency regime would be counterproductive.
  
"The appreciation of the renminbi cannot solve the US trade deficit against China and it cannot solve the US domestic unemployment issue," foreign ministry spokeswoman Jiang Yu told reporters.
  
"The issues in China and US economic relations and trade should be properly solved through consultations on an equal footing. Exerting pressure cannot solve the issue. Rather, it may lead to the contrary."
  
Despite his harsh warnings Geithner also tried to put the currency dispute in the context of a wider and mutually beneficial trade relationship with the fast-emerging economic super-power.
  
Boosting trade with China is seen as vital to President Barack Obama's goal of doubling exports in five years.
  
"We have very significant economic interests in our relationship with China," Geithner said.
  
The US exports to China have tallied more than 53 billion dollars since the beginning of this year.
  
But trade tensions with China were ratcheted up another notch on Wednesday when Washington called on the WTO to probe unfair Chinese trade practices.
  
The United States is accusing China of unfair treatment of US steel and electronic payment providers, the first step toward sanctions.

Date created : 2010-09-16

COMMENT(S)