China appealed to US lawmakers on Thursday not to politicize a currency
dispute or resort to pressure after four senators announced legislation to
Foreign Ministry spokesman Qin Gang called on Washington to recognize Beijing
is making progress in easing controls that critics say keep its currency
undervalued and add to swollen Chinese trade surplus.
"We hope the US senators can view the importance of the healthy development
of China-US economic relations from a strategic perspective, properly handle the
frictions in our economic ties and trade between the two sides, not politicize
the economic issue and not solve the issue by exerting pressure," Qin said.
US Senators Charles Schumer and Lindsey Graham said Wednesday they were
introducing legislation to penalize countries with a "fundamentally misaligned
currency." It would allow tariffs and other punitive measures against violators.
Senate Banking Committee Chairman Christopher Dodd and Senator Richard Shelby
of Alabama said they were introducing a measure that would direct the US
government to pursue currency cases before the International Monetary Fund and
World Trade Organization.
China revalued the yuan by 2.1 percent against the US dollar in July 2005 and
has allowed it to rise by about 5.7 percent in trading since then. But the
United States and other trading partners have been pressing for faster action.
"The reform will go on," Qin said at a regular news briefing.
"As for the direction for the future reform, it shall better reflect the
demand and supply of the market," he said. "We hope the United States can
recognize this point in a just manner."