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UPDATE 1-China notes U.S. yuan charge, to hold anger in check

http://uk.reuters.com/article/marketsNewsUS/idUKPEK3984220090123
SHANGHAI/BEIJING, Jan 23 (Reuters) – China will make clear its displeasure at U.S. accusations of currency manipulation but hold its anger in check in the belief that President Barack Obama is simply posturing, Chinese analysts said on Friday. Timothy Geithner, Obama’s choice to head the U.S. Treasury, said the president believes China is “manipulating” the yuan, a loaded term that the Bush administration had deliberately avoided even as it criticised Beijing’s exchange rate policy. The People’s Bank of China, the central bank, had noted the comments by Geithner, a central bank official told Reuters on Friday. “We have reported them to relevant government departments and are awaiting a response,” the official said, declining to elaborate. Under U.S. law, formally labelling China a currency manipulator would require the Treasury to begin “expedited” negotiations with Beijing to reduce China’s huge trade surplus with the United States and eliminate any “unfair” currency advantage. “China is going to be extremely unhappy, to say the least,” Tao Xie, an expert on Sino-U.S. relations at the Beijing Foreign Studies University. “For administration officials, I do not think any one has ever pointed a finger so strongly at China.” Chinese anger at Geithner’s choice of words, written in response to questions at his Senate nomination hearing, will add to simmering tensions over the global financial crisis.

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January 23, 2009 - Posted by | Financial High Treason

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