China threatens US over currency rate dispute

[joeblow]

China threatens US over currency rate dispute
Mon, 22 Mar 2010 01:54:01 GMT

http://www.presstv.com/detail.aspx?id=1 ... =351020404



Beijing has threatened to retaliate if the United States declares China a currency manipulator and imposes trade sanctions.

The US Treasury is to rule whether China is unfairly holding down its exchange rate to gain a competitive edge in global markets.

Political pressure is growing in Washington to declare China a currency manipulator. Some US senators have threatened to slap duties on Chinese products if Beijing fails to allow the yuan's value to rise.

Washington says China holds the yuan low so that Chinese goods can enjoy an artificial competitive edge.

Three years ago, Beijing had let the yuan climb 21 percent against the US dollar.

The International Monetary Fund and the World Bank have both urged China to let the yuan resume its ascent.

The currency debate has caused tension between the US and China. Relations between Beijing and Washington have been deteriorating over a number of issues, including the Pentagon's arms sales to Taiwan.

JR/ZAP/MMN