|
|
Currency bill reveals U.S. protectionism, risking Sino-US ties: experts (3) |
 |
+ |
- |
19:51, July 30, 2007 |
"By putting pressure on the RMB-dollar cross rate," Roach said, "Washington is unwittingly squeezing the efficiency solution of U.S. multinationals and imposing the functional equivalent of a tax hike on American consumers."
The central parity rate of yuan against U.S. dollar has grown by more than eight percent accumulatively from 8.28 yuan in July 2005 to the latest high of 7.5725 yuan. The country''s trade surplus, however, snowballed to 112.5 billion U.S. dollars in the first half of the year, up 83 percent from the same period last year.
The comparative advantages of China in production costs and productivity remained strong and punitive duties would only encourage China to expand its export market elsewhere, Tan said.
"The bill has predicated a hazardous tendency for the U.S. government to attempt to manipulate international organizations for its own good. This is unprecedented behavior and unacceptable, " she said.
The legislation urges the Bush administration to take action through the International Monetary Fund and the World Trade Organization against targeted countries that declined to reform their currency policies while allowing the Federal Reserve to intervene in global markets against the misaligned currency if the country fails to make appropriate reforms one year after being cited by the United States.
Roach said the worst-case scenario would be an escalation of retaliatory trade actions between the U.S. and China, which would have devastating implications for U.S. consumers and Chinese producers alike.
"I am hopeful that the political leadership in both the U.S. and China might come to their senses before sliding down what could be a very slippery slope," he said.
Source: Xinhua
[1] [2] [3]
|
|
|
Comment
Tell A Friend
Print Format
Save Article