China's top newspaper slams US Currency Bill

'Yuan is not the main reason for trade imbalance':

CHINA: China's top newspaper on Wednesday accused US lawmakers of "passing the buck" over America's economic problems with a bill to punish Beijing for alleged currency manipulation.

A commentary in the People's Daily viewed as the Communist Party mouthpiece said the bill was an attempt by lawmakers to cover up their inability to resolve America's economic difficulties.

"Faced with the discontent of the American people, some US lawmakers are using the Chinese currency to pass the buck over their political incompetence," said the article.

''Even those Americans who advocate renminbi appreciation have to acknowledge that a rise in the yuan's value is not a panacea to the US economic problems," it continued, using the official name for China's currency.

The US Senate this week pressed ahead with the legislation, which would empower businesses and in some cases labour unions to trigger a Commerce Department investigation into alleged currency manipulation.

Lawmakers of both major US parties charge that China keeps the yuan unfairly cheap against the dollar, giving its goods as much as a 30 percent edge over comparable US products.

But Beijing has let the yuan rise against the dollar as it faces stubbornly high inflation at home.

On Tuesday, Chinese foreign ministry spokesman Ma Zhaoxu said the proposed US measure amounted to "protectionism", while China's central bank also expressed "regret" at the bill.

"We think there are many reasons for global imbalances, and the yuan exchange rate is not the main reason for the Sino-US trade imbalance," the bank said in a statement.AFP