China 'will not bow on currency'

Envoy tells US that outside pressure on Beijing over exchange policy is unacceptable.

    US politicians say China's policy on the yuan is unfair and costing millions of American jobs [Reuters]

    Zhong however said China believed the stability of the yuan was a benefit to the global economy.

    During his visit Zhong held talks with Timothy Geithner, the US treasury secretary, which focused heavily on the currency row.

    'Manipulator'

    Speaking after the meeting Geithner said that he believed China would allow its currency to appreciate over time, but admitted that the US "can't force them to make that change".

    The US Treasury is due to submit a report to congress in mid-April and is under heavy domestic political pressure to label China a "currency manipulator".

    Such a designation could clear the path for punitive measures against Chinese exports, including tariffs on goods entering the US.

    China has warned repeatedly against any such move, saying it would risk a damaging trade war.

    At the same time the Barack Obama, the US president, is hoping to avoid worsening relations with Beijing, which have already been strained by a series of other rows.

    The Obama administration is keen not to alienate China from supporting several key international issues including a toughening of sanctions against Iran, pressure on North Korea to end its nuclear programme, and Chinese support in pulling the global economy out of recession.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Interactive: How does your country vote at the UN?

    Interactive: How does your country vote at the UN?

    Explore how your country voted on global issues since 1946, as the world gears up for the 74th UN General Assembly.

    'We were forced out by the government soldiers'

    'We were forced out by the government soldiers'

    We dialled more than 35,000 random phone numbers to paint an accurate picture of displacement across South Sudan.

    Interactive: Plundering Cambodia's forests

    Interactive: Plundering Cambodia's forests

    Meet the man on a mission to take down Cambodia's timber tycoons and expose a rampant illegal cross-border trade.