Chinese Minister warns against U.S. trade sanctions against Yuan

Beijing - China's Commerce Minister recently announced that it will not "turn a blind eye" and may retaliate against possible United States sanctions on the Chinese Yuan.

For the last several weeks, according to the Globe and Mail, rumors have run rampant that the Obama administration may brand China as currency manipulators and the Treasury Department will have to make that distinction next month. Nevertheless, Chinese Commerce Minister Chen Deming warned that it may retaliate against any threats of sanctions that might be imposed against the Chinese Yuan Renminbi if the Treasury Department Secretary, Timothy Geithner, does declare the Asian economic powerhouse to be a currency manipulator, according to the Press Trust of India. Speaking at the China Development Forum 2010 with the theme “China and the World Economy: Growth, Restructuring and Cooperation,” the Commerce Minister assured the attendees that the Yuan exchange rate is not undervalued and that any pressure on allowing the Yuan to appreciate is “irrational” and not good on both sides, reports Xinhua. Deming actually pointed out that the Yuan went up in value by 20 per cent between 2005 and 2008 in which China’s trade surplus increased during that time frame. However, it did decline by more than 30 per cent in 2009, “Personally I think China is likely to see trade deficit in March.” Press TV notes that critics are accusing China of keeping the Yuan artificially low in order to make its exports cheaper and more competitive in the global market, which has caused fierce tension between the U.S. and China in an already growing tense climate over a number of other isues.