12 Oct '11, 2am

China reacts furiously to US bill to punish Beijing for currency manipulation, saying it could set off trade war

BEIJING (AFP) - China reacted furiously on Wednesday to a US Senate vote to pass a bill that would punish Beijing for alleged currency manipulation, saying it broke WTO rules and could set off a trade war. US lawmakers defied warnings from Beijing and the White House to approve the measure, which leaders of the Republican-led House of Representatives also warn could lead to a trade war between the world's two largest economies. Republican House Speaker John Boehner has signalled he will not schedule a vote on the proposal, which envisions retaliatory duties on Chinese exports if the value of the yuan is unfairly 'misaligned'. China has repeatedly condemned the bill, and on Wednesday the foreign ministry called it a breach of World Trade Organisation (WTO) rules. 'It is a serious breach of WTO rules, which cannot solve the US's own economic and employment issues, and will.....

Full article: http://www.straitstimes.com/BreakingNews/Money/Story/STIS...

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