China and USA - currency wars?

China: Currency law would hurt U.S. jobs growth

Yahoo News

BEIJING (Reuters) - China warned the United States that it would damage relations, and American jobs, if it forces Beijing to let its currency rise under a law to be voted on in the U.S. Senate on Tuesday.

Vice Foreign Minister Cui Tiankai on Monday underlined Beijing's opposition to the bill, saying it could trigger a trade war and hold back global economic recovery. He said that relations could also be hurt by U.S. arms sales to Taiwan.

"(The currency bill) in no way represents the reality of the economic and trade relationship between China and the United States, and it might have an adverse impact on the development of the relations between the two countries," he said.

"Should the proposed legislation become law, the only result would be a trade war between China and the U.S. and that would be a lose-lose situation for both sides," said Cui, who currently heads the China delegation for G20 negotiations.

China's central bank, and commerce and foreign ministries last week jointly warned that enactment of the proposed currency law could lead to a trade war between the world's two top economies.

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3 Big Questions For Any Politician Who Supports The China Currency Bill

Business Insider,

10 October, 2011

The latest move on China politics at Washington is the China currency bill, due at the U.S. Senate on Tuesday, Oct. 12.  The proposal would levy tariffs on China and four other Asian countries for artificially depressing the value of their currencies to boost their exports.

To us, it seems evident that those in Washington have not thought this through completely (or chose to ignore).

For article GO HERE