China hits back at US over trade and currency
4 Feb
Chinese foreign ministry spokesman Ma Zhaoxu insisted the value of the Chinese yuan was not the main reason for China’s trade surplus with the US.
Mr Obama vowed to ensure that countries were not giving their currencies an unfair advantage over the dollar.
Ties between the US and China have been strained over an arms deal with Taiwan.
Tensions have also risen over reports of Chinese cyber attacks on US-run websites and a planned visit to the US by the Dalai Lama.
Trade agreements
US companies have long complained that China keeps its currency artificially undervalued, allowing a steady flow of cheap exports around the world.
At a meeting with Senate Democrats, Mr Obama was asked whether the US would cut ties with Beijing over continuing trade disputes.
He said he would continue to make sure that China and other countries abided by trade agreements, but warned it would be a mistake for the US to become protectionist.
“The approach that we’re taking is to try to get much tougher about the enforcement of existing rules (more…)
