Take punitive measures against Yuan manipulation – Senate

23 Mar '10

2 min read

Some members of the United States Senate put forward draft legislation, requesting the Government to take punitive measures against China's "currency protectionism" on March 16.

130 members of the Congress sent a joint letter to the US Treasury and the Department of Commerce on the previous day, demanding the government, to recognize China as a "currency manipulator",

Analysts point out that member's of Congress stirred the issue of Yuan exchange rate, mainly due to domestic social pressures and electoral political considerations

Senator Brown said at a news conference, "President Obama has put forward the plan of doubling exports from the United States in the next 10 years. However, this plan can not be achieved, if the exchange rate issue is not resolved."

Democratic Senator Charles Schumer who took the lead in the drafting of the motion claimed, "Premier Wen Jiabao says the problem of low value of the Yuan does not exist, but we are no longer willing to hear such comments and we are here today to tell him that we have to force him to adjust the Yuan exchange rate."

In a news conference held recently, Chinese Premier Wen Jiabao, severely criticized the pressure of some countries to appreciate the Yuan. He firmly pointed out that the Renminbi is not undervalued and that China will not bow to foreign pressure.

Chinese Ministry of Commerce spokesman YAO Jian has warned the United States not to politicize the Renminbi issue.

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