China Must Be Confronted on Currency

'Out of control' printing of dollars is triggering inflation, says minister

(NEWSER) - China has countered American anger over its artificially low currency with a complaint of its own. America is printing dollars at an "out of control" rate, sending up commodity prices around the world and saddling China with "imported inflation," the country's commerce minister grouses. Inflation in China—which holds roughly $2 trillion in foreign-exchange reserves—hit a 23-month high last month and is expected to peak later this year, Reuters notes. More»

(NEWSER) - China is speeding up efforts to encourage the use of its currency in international trading, with analysts predicting that the Chinese renminbi will become one of the three top currencies by 2012, reports the Times of London. In recent months Beijing has inked currency-swap deals with central banks from Korea to Argentina and expanded the currency's use in financial powerhouse Hong Kong. It's a major change for China, which holds trillions in US currency. More»

Leaders also discuss North Korea

(NEWSER) - Japanese Prime Minister Yoshihiko Noda met with Chinese President Hu Jintao in Beijing today, and emerged with a number of deals—including one that will marginalize the US dollar in Asia. The countries agreed to promote direct yuan-yen trades, the Wall Street Journal reports; until now, the money has usually been converted to dollars first. Japan will also hold yuan in its typically dollar-dominated foreign-exchange reserves. More»

Bill passes with big majority, but Senate prospects unclear

(AP) - The House has approved legislation that would allow the US to seek trade sanctions against China and other nations for manipulating their currency to gain trade advantages. The 348-79 vote yesterday sends the measure to the Senate, where its prospects are unclear. Senate supporters hope to get a vote on a similar proposal after Congress returns following the November congressional elections. More»

Prez says he'll take action to protect US interests if yuan isn't revalued

(NEWSER) - President Obama has threatened to get tough with China if it doesn't hurry up and revalue its artificially low currency. The president spent most of a 2-hour meeting with Wen Jiabao yesterday pressuring the Chinese premier on the yuan issue, sending the message that "if the Chinese don’t take actions, we have other means of protecting US interests," an aide tells the New York Times . More»