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US rejects call for WTO complaint over RMB
(Agencies)
Updated: 2004-11-14 10:24
US President George W. Bush's administration rejected a call by US lawmakers
to take China to the World Trade Organization for "currency manipulation."
On September 30, 2004, Democratic senators
Carl Levin of Michigan, seen here May 2004 and Charles Schumer of New
York, along with 28 other members of Congress sent a petition to the US
Trade Repsentative demanding it file a WTO complaint against China if
Beijing failed immediately to eliminate the "undervaluation" of the yuan.
[AFP] | The US Trade Representative's office
said such measures would not help, and might hinder, Chinese progress towards
leting the yuan free from a fixed peg with the dollar.
The request was made by 30 members of the US Congress.
The
congressmen accused China of manipulating its currency to gain unfair trade
advantages over the United States. Chinese yuan's value is pegged at about 8.3
yuan to the dollar.
In a statement, Neena Morjani, a spokeswoman for US
Trade Representative Robert Zoellick, said the administration believed that to
bring such a case to the WTO would undermine the White House's diplomatic
efforts to pressure China for a change in its currency policies.
"A
Section 301 action would not assist in these efforts, and indeed could be more
damaging than helpful at this time," she said. "We therefore must decline to
accept the course of action recommended through this latest petition."
"Working closely with US Treasury officials, China, according to Governor
Zhou (Xiaochuan) of China's People Bank, has made this a top priority and has
made a series of policy moves to liberalize rules governing foreign exchange
transactions, moved to strengthen and develop the finance sector, adjusted
interest rates, and taken other steps toward increasing flexibility in financial
policymaking; these are clear signs that the administration's efforts are paying
dividends," the statement read.
The congressional group petitioned the
Bush administration in late September, urging the US government to file a case
under Section 301 of the US trade law that would allow the United States to
impose penalties on Chinese goods if the WTO rules against China.
Wei Benhua, deputy director of the Chinese State Administration of Foreign
Exchange, said in Beijing this week that China's long-term goal was "to achieve
complete convertibility of RMB (yuan)," according to Xinhua news
agency.
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