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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World China warns against US retaliation over yuan AFP - Friday, June 25 Send IM Story Print China warns against US retaliation over yuan Slideshow: Full Photo Coverage: Business & Economy BEIJING (AFP) - – China Thursday warned against "protectionist" retaliation over its currency policy as lawmakers in Washington pressed ahead with legislation aimed at punishing Beijing for its weak yuan. Foreign ministry spokesman Qin Gang pushed back at calls for China to let the yuan appreciate, saying it would not solve the controversial Chinese trade surplus with the United States. "We believe the appreciation of the yuan cannot bring balanced trade and cannot help the US solve its problems of unemployment, overconsumption and low savings," he told journalists. Related article: China yuan still undervalued, says US "We hope the US can reflect on the problems of its own economic structure, instead of playing blame games and imposing pressure on others." Qin's comment came after US lawmakers Wednesday pushed legislation they said would treat currency manipulation as an illegal subsidy and enable US authorities to impose tariffs on Chinese goods. Critics have said for years that the yuan's de facto peg against the US dollar unfairly makes Chinese exports cheaper, hurting rival trading nations. Qin stressed the importance China places on trade with the United States and cautioned against punitive tariffs, which he said amounted to protectionism. "We hope the US can work with us and take a practical and constructive attitude and practical and constructive measures to promote our economic relations in a balanced way," he said. "Resorting to trade protectionism would be unreasonable and bring benefit to no one." On Saturday, China's central bank pledged to make the yuan exchange rate more flexible in an announcement widely seen as a bid to head off rancour at this weekend's G20 summit and amid the mounting accusations of US politicians. Since then, the central bank has allowed limited movement in the currency, but has ruled out a large revaluation. According to the latest US trade data issued earlier this month, the US trade deficit with China expanded 14.3 percent to 19.3 billion dollars in April. Last year, the deficit rose to 227 billion dollars, helping boost China's foreign reserves, now at a massive 2.4 trillion dollars. Recommend Send IM Story Print Related Articles US-BUSINESS Summary Reuters - 28 minutes ago Hasbro says not in buyout talks Reuters - 28 minutes ago SOFTS-London cocoa touches 32-yr high, arabicas 12-yr peak Reuters - 31 minutes ago FOREX-Yen gains on Fed and Greek debt concerns Reuters - 35 minutes ago Corrected: Feinberg to quit pay czar post, focus on BP fund Reuters - 35 minutes ago News Search Top Stories Longest ever tennis match resumes at Wimbledon Russia-Belarus gas dispute draws to a close Germany fires pre-G20 broadside at US criticism Swingers at risk of sexual disease: Dutch study Paraguay want to end New Zealand's W.Cup fairytale More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended Aussie men shoot each other in buttocks 'to see if it hurts' Disgraced millionaire lobbyist takes pizza job Nurse in iconic World War II kiss photograph dies Gulf containment cap reattached, collecting oil: BP Prince Albert of Monaco announces engagement More Most Viewed » Aussie men shoot each other in buttocks 'to see if it hurts' More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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