Not the time for US to slam China

Updated: 2011-10-08 10:18


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The speedy appreciation of the yuan is not the solution to US' faltering economy. Instead, a stronger yuan that slows Chinese growth could further and threaten the global recovery, which is the last thing the world economy in general and the US in particular requires, according to a commentary on the website of The Wall Street Journal on Oct 5, 2011.

The US is getting desperate, says the piece, as it is seeking any solution "to stop unemployment from rising and its economy from heading back into recession". And China, with its weak yuan, is "back in the firing line".

But the US is in no position to point the finger of blame anywhere else, deems the article, with the weakness of its own currency being accused of causing 'currency wars' by some countries.

Also, China, as promised, had continued its steady policy of allowing the yuan to appreciate gradually against the dollar.

With an economy that simply refuses to bounce, the US government is frantically looking abroad for excuses, it says." That is why the US Congress is once again dredging up that old chestnut: Let's slam tariffs on imports from countries that have undervalued currencies–like, guess who, China!"

China fought back by warning that "the US could trigger a trade war if it starts throwing tariffs around". This is hardly what the US or anyone else needs, it notes, with the world teetering on the edge of another recession. And China itself is likely to "play a pivotal role", concludes the article, as it has in the past, "in helping to keep the global economy from slowing any further".