A group of US senators
said on Tuesday they would push for tariffs on imports from China
if the Chinese government does not take steps to float its
currency.
It's a "shot across the
bow," claimed Senator Jim Bunni.
Under the proposed bill,
Chinese goods would face a 27.5 percent tariff in the United
States, and China would lose its special trading status.
Their action sends a
message that some in the United States are leaving reason behind on
the yuan issue.
Such a bill, if passed,
would lead bilateral trade nowhere.
In response to
international concerns, the Chinese government and banking
officials have made their views and position clear. They have
illustrated a stable yuan is good for both the Chinese and world
economies including the US.
Authoritative organs
including the World Bank and the International Monetary Fund support
China's stand. They do not favor hasty steps along the road to a
deregulation of the yuan in the world markets.
The US senators argue a
"devalued" yuan has caused job losses in their country's
manufacturing sector.
China understands there
will be different views on its currency policy. It is open and
ready to hold talks with relevant parties on this issue, and it
believes a solution can only be attained through consultation and
talks.
The recent high-level
talks with US Treasury Secretary John Snow in China serve as a good
example of constructive dialogue and provides experiences for
reference.
But one meeting cannot
sort all things out. The two sides should adopt a pragmatic
attitude and hold further consultation on the issue.
An unwarranted
unilateral action to impose punitive tariffs on Chinese goods,
however, is not a wise choice.
If China becomes subject
to such discriminatory and unfair treatment, it will be justified
in retaliating.
Given the scale of
imports and exports between the two countries, a trade war is the
last thing either sides wants.
It would not only cause
great losses to both nations, but also strike a heavy blow against
a world economy still reeling from recessions.
The US senators may need
to think again before taking a dangerous step.
(China Daily September 12, 2003)