China Hits Back on US Yuan Bill, Says It Violates WTO

Discussion in 'Wall St. News' started by ASusilovic, Sep 30, 2010.

  1. China on Thursday hit back at a bill passed by the U.S. House of Representatives aimed at pressuring Beijing to let its currency rise faster by branding it in violation of world trade rules.

    China's tight leash on the yuan is under intense scrutiny as countries around the world look to export their way back to economic health, raising concerns they will intentionally weaken their currencies to gain an edge.

    The bill allows the U.S. Commerce Department to treat "fundamentally undervalued currencies" as an illegal export subsidy so that U.S. companies can request a countervailing duty to offset China's price advantage.

    http://www.cnbc.com/id/39431346
     
  2. I would suggest China not throw stones when it lives in a glass house.
     
  3. Saber rattling. I highly doubt anything of consequence results from this.

    US Fortune 500 manufacture in Chindia. They got Congress by the balls.
     
  4. How is currency manipulation and state sponsored subsides not a violation of the WTO?

    Artificially weakening your currency and controlling outflows/inflows is the same as a punitive tariff.
     
  5. it's all bullshit until a policy is implemented. So far:

    US: tire tax
    China: chicken tax


    us turn next.
     
  6. Truth is the first victim of any human conflict. This is very true for the U.S. and China conflict in trade and exchange rate.
     
  7. The fact you ask such a question shows you don't come from a 5000 year culture.

    :p
     
  8. US slammed by WTO over law banning Chinese poultry


    Thursday 30 September 2010 08:45


    Increasing hostility between the USA and China over trade has been ruffled further after the WTO ruled against America in a dispute over a ban on imports of Chinese chicken products.

    The WTO dispute panel ruled on 29 September that a ban on imports of Chinese poultry products, enacted in 2004 during the bird-flu crisis, was discriminatory as China has met health and safety criteria to export poultry to other WTO members.

    China has already imposed considerable tariffs on US poultry in response, announcing increases last weekend, with producers now facing tariffs of between 50.3% 105.4%.

    This comes on the back of a rocky year for US poultry exports with Russia only recently opening its doors to imports from the US after it imposed a ban on all chicken treated with chlorinated water earlier this year.

    The WTO ruling comes at a time when the House of Representatives in Washington has overwhelmingly approved a bill that allows for tariffs against goods produced in countries whose currencies are overvalued.

    http://www.fwi.co.uk/Articles/2010/...d-by-WTO-over-law-banning-Chinese-poultry.htm