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US Congress move on RMB 'counterproductive'
(Agencies/chinadaily.com.cn)
Updated: 2005-02-05 09:55

Certain moves by members of the US Congress to force China to speed up the revaluation of its currency are counterproductive, senior US Treasury official John Taylor said in London(AFP/File
Certain moves by members of the US Congress to force China to speed up the revaluation of its currency are counterproductive, senior US Treasury official John Taylor said in London during the G7 meeting of finance ministers on February 4. [AFP/file]
Certain moves by members of the US Congress to force China to speed up the revaluation of its currency are counterproductive, a senior US Treasury official said in London during the G7 meeting of finance ministers.

During a meeting with Chinese Finance Minister Jin Renqing, Treasury Undersecretary John Taylor "aknowledged that there are some initiatives in Congress that would not be productive toward moving forward and ... would put our economic diplomacy back," said the official who asked not to be named.

"We are making progress with our economic diplomacy," he added.

At least a dozen senators from both President George W. Bush's Republican Party and the opposition Democrats have agreed to co-sponsor a bill that would give China a six-month deadline to revalue its currency or face a 27.5 percent tariff on all Chinese manufactured goods entering the United States.

"There are some pressures in Congress that would move back the economic and financial diplomacy that has moved forward," the official continued.

"The path we are on is bearing results. The path we've chosen is the right path."

In remarks to reporters earlier Friday, Taylor appealed to China to "move as quickly as possible towards a flexible exchange rate".

But he added: "Our discussions with the Chinese have been good and candid."

Taylor was replacing US Treasury Secretary John Snow, absent with a chest cold, at a meeting here of Group of Seven finance ministers, to which China has been invited.


Chinese FM spokesman Kong Quan.
[file]
China's stance

At a Foreign Ministry press briefing on February 3, FM spokesman Kong Quan said that move by the US Senate cannot help resolve differences between the two countries.

"Every country's economic and financial policies are established and implemented in accordance to their own specific situations," he said.

He said the Chinese Government always holds to the opinion that to ensure and maintain the rapid, healthy and stable development of China's economy helps not only China but also mutually beneficial economic and trade co-operation with Asia and other countries.



 
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