China sends envoy to US to discuss trade frictions
China sends envoy to US to discuss trade frictions
13:35, March 19, 2010 
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China's government Friday said it was sending an envoy to the United States to try to ease trade frictions with American politicians have lately crowed about Chinese currency's valuation. However, Beijing has cautioned that pressure from US side could complicate talks, according to a report filed by The Reuters Friday.
The announcement, and comments by China's commerce ministry, appeared aimed at lowering the temperature in an increasingly heated dispute, with U.S. senators threatening to slap duties on Chinese products if Beijing does not allow the yuan to rise, the report said.
"Channels of communication between our two sides are open. All issues of concern to either side can be discussed through these channels," He Ning, head of the commerce ministry's North American Division, told a media briefing.
Deputy Commerce Minister Zhong Shan will visit the United States from March 24-26 for discussions focused on the "Sino-U.S. trade balance and trade frictions,” He said.
Beijing has tried to disperse outside pressure on its currency formation regime. "This will make the whole situation more complex, imposing an external disturbance on our normal channels of communication. That's a trend that we do not want to see," the official was quoted as saying.
Beijing says this currency stability has benefited the global economic recovery.
Just last week, market expectations were growing that a solid recovery in Chinese exports and a build-up in inflationary pressure might prod the government to permit yuan appreciation. However, the situation changed abruptly with the vocal demands from Washington.
Investors have scaled back their bets on any imminent move on the view that Beijing will find it politically unpalatable to appear to cave into U.S. pressure, according to analysts.
They say that Beijing might let its currency trade more freely in a large flexible scope late this year.
By People's Daily Online
The announcement, and comments by China's commerce ministry, appeared aimed at lowering the temperature in an increasingly heated dispute, with U.S. senators threatening to slap duties on Chinese products if Beijing does not allow the yuan to rise, the report said.
"Channels of communication between our two sides are open. All issues of concern to either side can be discussed through these channels," He Ning, head of the commerce ministry's North American Division, told a media briefing.
Deputy Commerce Minister Zhong Shan will visit the United States from March 24-26 for discussions focused on the "Sino-U.S. trade balance and trade frictions,” He said.
Beijing has tried to disperse outside pressure on its currency formation regime. "This will make the whole situation more complex, imposing an external disturbance on our normal channels of communication. That's a trend that we do not want to see," the official was quoted as saying.
Beijing says this currency stability has benefited the global economic recovery.
Just last week, market expectations were growing that a solid recovery in Chinese exports and a build-up in inflationary pressure might prod the government to permit yuan appreciation. However, the situation changed abruptly with the vocal demands from Washington.
Investors have scaled back their bets on any imminent move on the view that Beijing will find it politically unpalatable to appear to cave into U.S. pressure, according to analysts.
They say that Beijing might let its currency trade more freely in a large flexible scope late this year.
By People's Daily Online
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