Oct. 12 - China urges the White House and Congress to block currency bill, saying it will disrupt China-U.S. ties and won't solve America's job problems. Arnold Gay reports.
NOTE: THIS EDIT CONTAINS CONVERTED 4 BY 3 MATERIAL China is urging the Obama administration and Congress to block legislation aimed at pressuring Beijing to let the yuan appreciate further. Domestic broadcaster CCTV carried a statement from the Foreign Ministry on Wednesday (Oct 12), just hours after the U.S. Senate approved the bill, and sent it to the House for debate. (SOUNDBITE) (Mandarin) CHINA'S CENTRAL TELEVISION CCTV ANCHORWOMAN READING OUT A FOREIGN MINISTRY STATEMENT SAYING: "The bill is a protectionist step under the disguise of tackling exchange rates imbalance and gravely violates world trade rules. It won't solve the economic and job problems of the U.S., but will severely disrupt China-US economic and trade relations and the shared efforts of China and the U.S." Many U.S. lawmakers and business groups say China suppresses the value of its currency to give its exports an unfair advantage. It's the first time such a bill has advanced so far in the legislative process amid high unemployment and upcoming presidential elections in the U.S. Beijing has warned the bill could spark a trade war, but CCB Securities' Paul Schulte thinks this isn't likely. (SOUNDBITE) (English) CCB INTERNATIONAL SECURITIES' GLOBAL HEAD OF FINANCIAL STRATEGY, PAUL SCHULTE, SAYING: "I don't think it signals at all a trade war, I think it signals, it's language, it's language that the U.S. is suffering deeply, that the currency undervaluation of the RMB is a source of contention and frustration. But I think we are far far far away from anything remotely resembling a trade war. This is a kind of resolution, this is not binding law." If Congress approves the bill, which is not certain, Obama still has final veto powers. The bill would allow the U.S. government to slap duties on goods from countries subsidizing their exports via undervalued currencies. Arnold Gay, Reuters.