China warns U.S. that 'trade war' will hurt Americans even more

[Omaha Steve]

Source: Washington Post

By John Pomfret

BEIJING -- China's minister of commerce warned that United States on Sunday that if it launches a "trade war" against China by leveling punitive tariffs on Chinese imports, the United States would suffer the most.

Minister Chen Deming also said what he termed was the U.S. government's "obsession" with China's exchange rate could not be seriously addressed until the U.S. government stopped blocking the export of high-tech products, such as supercomputers and satellites, to China.

"If some congressman insist on labeling China as a currency manipulator and slap punitive tariffs on Chinese products, then the China government will find it impossible not to react," Chen said in an interview with The Washington Post. "If the United States uses the exchange rate to start a new trade war, China will be hurt but the American people and U.S. companies will be hurt even more."

Chen's comments, made in an hour-long interview at the ministry Sunday afternoon, reflect the exasperation inside the Chinese leadership with the U.S. attempt to push China to let the value of its currency, the yuan, rise against the dollar. In addition, Chen's remarks also underscored how China is seeking to use the current trade dispute with the United States to push its own agenda with Washington -- to get rid of or at least lighten the 20-year-old sanctions limiting American exports to China.


Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/03/21/AR2010032101111.html

[Fearless]

1. The current trade set up is hurting us plenty... Thanks.

[SocialistLez]

6. +1

[Owl]

17. +2

[DeSwiss]

2. China seems to be.....

...exporting "threats" more than anything else these days.

- But nobody's buying......

K&R

[Imperialism Inc.]

3. I say give them what they want.

Lifting restriction on export from the US to China will be good for the American business that make those products.

Getting the Chinese to allow their currency to rise is also important. By keeping it artificially low it keeps Chinese products cheaper than American made ones. Sounds like a win-win to me. Get them to let their currency rise in exchange for lifting export restrictions.

[boppers]

15. They refuse to pay fair market value for what they want.

They want to buy american products for pennies on the dollar, because they insist that the yuan is worth more than it is. Why would they have an incentive to change that, if we lift export restrictions?

[Imperialism Inc.]

16. You have it backwards. We are asking them to let their currency rise not fall.

They keep it artificially low so that their goods are cheaper here. That makes our goods more expensive there not cheaper.

[UpInArms]

4. maybe China could export some of our jobs back?

:shrug:

[OhioChick]

12. +1 n/t

[still_one]

5. There won't be a trade war, but as far as China's idiotic statement perhaps they should see how

much money they threw into our treasuries, and tell us who has got who by the barrel?

[Ikonoklast]

8. China's Economy: Export Or Die.

U.S.: One Big Customer.

Hmmmm.

And we have their money. About a trillion, roughly.

Hmmm.




OK, have at it.

[Po_d Mainiac]

11. Can you spell "default?"

I knew you could.

[roguevalley]

14. Japan owns more of us than China I heard. Well, they can come and

get it. Good luck loading Rockefeller Center on a boat.

[RUMMYisFROSTED]

7. Bring it on!

[Duer 157099]

9. Took the words right outta my mouth n/t

[sendero]

10. Hey Captain Melamine..

... you are full of shit.

No form of interaction with your country or lack thereof could be worse than what we have now.

[Psephos]

13. All they have to do is stop buying US debt. Game over.

They can survive a lot longer on their $2.5 trillion in actual cash than the US govt. can survive with doubled interest rates. Cf. "Greece" for a preview of what happens when no one wants to buy a government's bonds at less than pawnshop rates.

[Zorra]

18. Ain't globalism wunnerful?

:puke:

[Haole Girl]

19. How many more headlines will read, "China warns..." ? nt