China: U.S. vote on currency bill would result in trade war

Reuters News
|
Posted: Oct 10, 2011 4:43 AM
China: U.S. vote on currency bill would result in trade war

BEIJING (Reuters) - China reiterated on Monday that an expected vote this week in the U.S. Senate on a bill intended to pressure Beijing to allow its currency to rise, if made into law, would result in a trade war and hurt U.S.-China ties.

China's Vice Foreign Minister Cui Tiankai made the comments to reporters during a briefing.

Cui also said that a trade war between China and the United States would further hurt U.S. jobs growth and hinder recovery of the world economy.

The U.S. legislation, which calls for tariffs on imports from countries with deliberately undervalued currencies, will head toward a final Senate vote on Tuesday.

Many economists say China holds down the value of its yuan to give its exporters an edge in global markets.

But Beijing says it is committed to gradual reform of the yuan, which has risen 30 percent against the dollar since 2005.

(Reporting by Michael Martina, Writing by Sui-Lee Wee; Editing by Ken Wills)