Thread: China urges Obama to respect free trade, defends currency po

China urges Obama to respect free trade, defends currency policy

Nov 6 11:39 AM US/Eastern

China said Thursday it hoped the United States would adhere to free trade under Barack Obama, while defending exchange rate policies criticised by the president-elect during his campaign.
"We will continue to follow a mutually beneficial foreign policy, we believe in free trade, and we believe America also believes in free trade," foreign ministry spokesman Qin Gang said.

"We hope that the policy of free trade will continue to be adhered to. We must prevent trade protectionism, which is no good for either side," he said, when asked if he thought Obama would be more protectionist.

Obama, who won the US presidential election Tuesday, said during his campaign that China's huge trade surplus with the United States was related to its manipulation of its currency.

In a letter to the US National Council of Textile Organisations published last month, Obama called for China to change its foreign exchange policies to rely less on exports and more on domestic demand for growth.

"Some people in America think the trade imbalance between China and America is caused by the yuan exchange rate, but as a matter of fact, I believe we should have a correct understanding of trade between China and the US," Qin said.

"We admit there's a trade imbalance between China and the US... but you cannot put the blame on China. It's the result of the division of labour against the backdrop of economic globalisation."

China's currency was pegged to the US dollar until 2005, when it was allowed to gradually rise against the greenback. Since April, however, it has moved very little from about 6.85 to the dollar.

"We have taken a series of actions to tackle this issue. For example, the yuan exchange rate is not rigid. As you can see in the past few years, the exchange rate has been rising," Qin said.

Qin reiterated China's argument that the United States could reduce the deficit by lifting restrictions on high-tech exports.

"We'd like to also introduce more products from the United States, especially those high-tech products," he said.

"We hope the United States can lift commercial restrictions on high-tech products. It could contribute to balanced trade between the two countries."

http://www.breitbart.com/article.php?id ... _article=1

China has an artificially set foreign exchange rate which is damaging to both the United States and to Mexico. If it were not for Chinas exchange rate Mexico would be a more economic place to produce. A lot of what is produced with illegal aliens labor in Los Angeles and other sanctuary cities in industries obsolete for the United States or imported from China would be produced in Mexico instead.

The Hayeks Salma Hayek and her brother Sami are looking at clothing production in Mexico but if the Chinese were not subsidizing their own producers through their currency a lot more clothing would be coming to us from south of the border.

"We hope the United States can lift commercial restrictions on high-tech products. It could contribute to balanced trade between the two countries."

Hogwash! China artificially inflates its currency, so it is probably 100 yuans to the dollar. China uses that fluffy yuan exchange rate to buy US Treasury obligations, which means the taxpayer is paying the interest in dollars. The interest rate to the Chinese, while a note or bond may say 5 percent could probably be 20 times more valuable in Chinese currency. We refinance national debt, pay interest, run out of money and issue more paper, of which the Chinese already own 40 percent.
Yes we need to give them more high-tech products, so they can copy and manufacture them and sell them to us for cheaper, while not realizing (or caring) that we will no longer have jobs to earn the money or pay the taxes to buy the high-tech products.
Financially, they don't have us over a barrel, they have us under the guillotine.
Forget learning Spanish. Learn Mandarin Chinese.

Obama will get the sea of the treaty to his desk and he will sign it. He will sign all globalizion laws. Obama is a globalest transie!!!

I would praise Obama if he'd only drop China like a hot potatoe. Doing business with China is like selling your soul..something a lot of our leaders have done.

Trouble is politicians will sell their soul for a dollar.