BEIJING, (Reuters) – China’s Foreign Ministry warned yesterday that a U.S. bill aimed at pressing Beijing to lift the value of the yuan could disrupt joint efforts to prop up global economic recovery and urged the Obama administration to oppose the legislation.
The legislation “gravely violates World Trade Organisation rules,” Foreign Ministry spokesman Mao Zhaoxu also said after the U.S. Senate approved the bill, threatening to punish China for holding down its currency.
“China urges the U.S. government, Congress and all quarters to resolutely oppose using domestic legislation to create a fuss about and put pressure on the renminbi exchange rate,” said Ma in comments on the ministry’s website (www.mfa.gov.cn).
The “renminbi” is another name for China’s yuan currency.
Many U.S. lawmakers, trade unions and manufacturing lobbies say China keeps down the value of its yuan currency to give its exports an unfair edge in global markets.