Beijing responded to Washington”s threats

Written by admin on April 28th, 2010

Yesterday, Chinese Foreign Ministry has promised to confront accusations and political pressure from the United States.

between the two superpowers once again heating up relations. This time the occasion was the news that the States last week signed an agreement1000to sell at $ 6.4 billion in arms to Taiwan. This is an island state, China believes its breakaway province and reacts aggressively to strengthen the defense there.

On Tuesday, Chinese authorities have clearly stated that "in response to a blatant disregard for American protests and petitions" China is going to impose sanctions against all companies involved in arms sales to Taiwan. Particular excitement of experts associated with the fate of the corporation Boeing, which is a major player in the Chinese aviation market and is planning for 20 years to sell in this country aircraft on the $ 200 billion

Americans began to accuse opponents of protectionism. On Wednesday, U.S. President Barack Obama announced his intention to more rigorously to enforce China"s trade rules and open its markets to American goods.

U.S. leader also promised to "exert constant pressure on the PRC in connection with the under-appreciation of the yuan, to spread the belief that there is no artificially inflating the prices of our products and that their goods are not artificially reduce the price." Rate of the yuan since July 2008 is enshrined in China at 6.83 yuan per dollar, which is why, according to Barack Obama in the United States suffer from producers. In 2009, Chinese exports to the U.S. reached $ 266 billion, while U.S. sales in China totaled $ 143 billion

On Thursday, Chinese Foreign Ministry spokesman Ma Chao-Hsu denied the accusations of Mr. Obama, noting that among the leaders of China"s growing discontent with the need to listen to lectures on economic policy from its main debtor. How to write "i", China, keeping in reserves of more than $ 2.4 trillion., Is the largest creditor of the United States.

"At the moment, taking into account the international balance of payments, as well as supply and demand in the market Forex, the yuan could be called a reasonable and balanced", - said Ma Chao-Hsu. According to experts, none of the parties is not profitable now to make concessions. Barack Obama gets good political dividends, struggling with the yuan at a time when unemployment in the U.S. rolls over for a record 10% and growing excitement, that China is stealing American jobs.

In turn, the Chinese authorities a low rate of the yuan is vital for the implementation of the announced plan to withdraw at full capacity, export cars to fill the demand, which should increase dramatically as the global economy out of recession.

While the economies of most regions of the world falls in China continues to boom. In 2009 its GDP grew by 8,7%, surpassing analysts" forecasts and the state plan (8%). The main engine of economic growth is a dedicated government stimulus package of $ 585 billion to the current in the fast-growing economy of the state, investors and speculators, money does not create inflation, the government of China revalued the yuan from time to time. According to the calculations of the newspaper New York Times, since July 2008 the Chinese currency has risen about 21%. But the dollar, in which to value export products, its rate has not changed.

"The problem of the renminbi has the potential to become a very hot political issue. We are in grave danger: on bilateral trade relations could be hit hard in the second half of this year", - believes Kenneth Libertal, Professor of Economics, manage relations with China Bill Clinton"s administration.


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