|
US threatens to tariff China exports
WASHINGTON - The Bush administration, in its hardest stance yet, warned China on Tuesday that it likely will be accused of manipulating its currency to gain an unfair trade advantage over the United States — unless Beijing acts swiftly to overhaul its currency system. SNIP American manufacturers say this system has undervalued the yuan by as much as 40 percent. The weaker yuan makes Chinese goods cheaper in the United States and American products pricier in China. I'm sick of seeing all my cheap crap being made in China "While China's 10-year-long pegged currency regime may have at times contributed to stability, it no longer does," Their government is no longer contributing to stability either the Treasury report said. The report called China's currency policies "highly distortionary" — posing a risk to, among other things, China's trading partners and global economic growth. SNIP For their part, the Chinese still insist they need more time to shore up their banking system so it can withstand the volatility that a flexible currency would introduce. This may be true. I have read in several locations that nearly 60% of the Chinese bank loans are bad. Posted by: mmurray821 2005-05-17 |
| http://www.rantburg.com/poparticle.php?ID=119395 |