China hits back at Obama on Yuan

Central Banker Takes Issue With Obama’s Currency Remarks, in New Testiness; Beijing Says U.S., Too, Has Share of Abuses

The Wall Street Journal
by Sky Canaves and Aaron Back

BEIJING—China responded sharply to U.S. criticism of its currency and human-rights practices, the newest indicator of testy relations between the two powers.

A senior Chinese central banker, responding to U.S. President Barack Obama’s remarks urging China to move toward a more market-based exchange rate for its currency, suggesting the president was trying to divert attention from the U.S.’s own economic mismanagement.

“We don’t agree with politicizing the…exchange rate issue,” People’s Bank of China Vice Governor Su Ning said when asked about Mr. Obama’s remarks Friday on the sidelines of China’s legislative meetings in Beijing. “We also don’t agree with a country taking its own problems and having another country solve them.”

Mr. Obama’s remarks Thursday were relatively mild, compared to statements from some U.S. lawmakers and economists who say China has suppressing the value of yuan, making the country’s exports artificially inexpensive. In a speech at the Export-Import Bank’s annual conference, Mr. Obama argued that liberalizing China’s exchange rate would help increase consumption in countries like China that have external surpluses, and boost savings and exports in countries like the U.S. that have external deficits.

The article continues at WSJ.

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