China rebuts the U.S.’ criticism over its currency, the yuan, saying it is groundless to say China manipulates its currency to boost foreign trade.
“It is groundless for the U.S. to criticize China’s exchange rate policy simply according to the trade surplus alone,” Yao Jian, spokesman with the Ministry of Commerce, said Wednesday at a news conference.
The comments came after key U.S. Congressional hearings on Beijing’s currency late Wednesday. China is facing fresh pressures for the United States for a stronger yuan before the mid-term elections in November.
“China’s trade surplus against the United States only reflects part of the two parties’ economic relationship,” Yao said, “The United States has massive investment in the Chinese market, with $220 billion worth of sales volume annually. Taken together, China and the United State’s economic benefits are complementary.”
It is unreasonable to bring pressure over Beijing’s currency system, judging by China’s trade surplus against one country, Yao said. He also noted that Chinese government has adopted a strong of policies to encourage import since the start of the year.
China doesn’t want “a few politicians” to attract votes by accusing China’s trade policies, especially the currency system, Yao added.
At the same time, Yao also rebuff a U.S. Commerce Department’s decision to impost anti-dumping and countervailing duties on Chinese steel products.
The Chinese government and industries would not accept the duties as they were discriminatory, he said.