China: U.S. move on yuan bill "redundant"
TAIPEI | Mon Sep 27, 2010 2:29am EDT
TAIPEI (Reuters) - A U.S. congressional panel's approval of a bill on China's currency is "redundant," China's vice commerce minister said on Monday, the latest salvo from China in the face of U.S. pressure on its currency policy.
Vice Commerce Minister Chen Jian also told a media briefing during a visit to Taiwan that China would set policy on its currency according to its own needs.
"We'll make a decision based on our own economic development levels and the world economic situation. If it takes the yuan to appreciate for our economy to develop, we will do it even though it would have negative impact," Chen said. "But it is redundant for the U.S. congress to pass the proposal."
The U.S. House of Representatives Ways and Means Committee approved a bill on Friday, expected to be voted on this week, that would let the United States apply duties on goods from countries with undervalued currencies.
The vote is a first step to fulfilling long-standing threats to penalize Beijing for keeping its currency artificially weak, which critics claim creates an unfair trade advantage for China.
It comes a day after U.S. President Barack Obama pressed Chinese Premier Wen Jiabao on the issue in talks on the sidelines of the United Nations General Assembly meeting.
The yuan rose against the dollar on Monday even though the central bank lowered its mid-point after nine days of stronger fixings in the face of growing U.S. pressure on Beijing to let the currency rise faster.
See for the latest report on the yuan.
Chen added that the yuan's recent rise would hurt China's exporters, but the effects would diminish over the long term. He was speaking in Taipei after a forum on developing cross-strait trade.
(Reporting by Faith Hung and Lin Miaojung; Editing by Chris Lewis)
