Thursday, September 30, 2010

China: Yuan Congress Measure Will Hurt Global Economy and Start Trade Wars

There was much more on the currency wars yesterday. The U.S. House of Representatives passed measures yesterday to pushup the value of the yuan. China says that will hurt the global economy. What is wrose is the way the they intend to inforce it, by lettin domestic companies ask for duties on imports from China to compensate for the effect of the weak yuan.

China said the legislation will do nothing to cut the U.S. trade deficit and only risk harming growth.

Protectionism is horrible thing.

China is urging the U.S. to resist protectionism so as to "refrain from any damage to the interests of both peoples and people around the world.”

Yao Jian, China's Commerce Ministry spokesman  saiys China doesn’t undervalue the yuan to gain a trade advantage and the bill won’t eliminate the U.S. gap, instead "the legislation violates World Trade Organization rules" and "the U.S. deficit was a result of changes in the global supply structure".

“China has a trade surplus with the U.S., but huge deficits with a number of Asian countries and regions,” "One-sided trade restrictions won’t solve the imbalance and the U.S. should instead lift restrictions on exports and work more actively with China".

We track all currency ETFs live here, including the two Chinese currency ETFs. Please see also our posts on the CYB.

The question now is did the politicians really mean this silly measure, or is it just because it is an election year?

Stumble Upon Toolbar

No comments:

Financial TV

Blog Archive

// adding Google analytics