China Issues US Yuan Bill Warning

Things are heating up in the under-hand currency war that is going on between a handful of countries at present.

With certain countries including China, Japan and Sweden intervening in their own currency by buying it back, the response from opponents is getting louder and less tolerant. The US, in particular, has spoken out about such interfering and branded it unacceptable.

China (and the other intervening countries) are being accused of buying and selling their own currency in order to keep it artificially low to help its exporters.

Such a move was always going to cause friction between nations and it seems this has happened with China responding icily. China has now warned that a US bill aimed at penalising it for its currency manipulation will most definitely “harm relations” between the two economic heavyweights. This is an unsettling prospect to say the least.

The bill, which treats undervalued currencies as illegal export subsidies has angered China whose foreign ministry spokesperson has commented that China is ‘resolutely opposed’ to it.

“Using the [yuan] exchange rate issue as an excuse to engage in trade protectionism against China can only harm China-US trade and economic relations, and will have a negative effect on both countries’ economies and the world economy,” warned spokeswoman Jiang Yu, speaking at a regular press briefing.

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