Thursday, Mar 18, 2010
China exchange rate policy a concern-India minister
WASHINGTON - A top Indian official expressed concern on Thursday about China's exchange rate policy, which he said created problems for Indian exporters.
"I don't set the policy, but yes, Indian industry has in the past expressed its concerns on this issue," Indian Commerce and Industry Minister Anand Sharma told reporters after a speech.
"We feel that the policy should be such that exporters should not be disadvantaged," he added, referring to China's exchange rate policy.
This week, a bipartisan group of U.S. senators offered legislation that could lead to U.S. duties on some of China's exports if it does not raise the value of its yuan.
They charge that China's currency is undervalued by at least 25 percent, effectively subsidizing China's exports and taxing its imports.
A group of 130 lawmakers in the U.S. House of Representatives also urged President Barack Obama's administration this week to formally label China a currency manipulator in a Treasury Department report due on April 15.
The focus on China comes at a time of high U.S. unemployment and huge budget deficits that has put pressure on lawmakers to create jobs without adding to the debt.
Asked to clarify if the Indian government shared the view of Indian industry about China's exchange rate, Sharma said: "Well, industry is part of the country, so yes."
Some analysts believe China's currency policy has a more detrimental effect on developing country exporters than it does on the United States.
They say it enables China to outprice developing country competitors, both in their home markets and abroad.
In a separate interview, Canada's ambassador to the United States said he expected leaders of the Group of 20 rich and emerging economies to discuss China's exchange rate when they meet in Canada in late June.
"I'd be surprised if it wasn't discussed," Canadian Ambassador Gary Doer said.
China, India and the United States are all members of the G20, along with Brazil, Japan, Germany and others.
WASHINGTON - A top Indian official expressed concern on Thursday about China's exchange rate policy, which he said created problems for Indian exporters.
"I don't set the policy, but yes, Indian industry has in the past expressed its concerns on this issue," Indian Commerce and Industry Minister Anand Sharma told reporters after a speech.
"We feel that the policy should be such that exporters should not be disadvantaged," he added, referring to China's exchange rate policy.
This week, a bipartisan group of U.S. senators offered legislation that could lead to U.S. duties on some of China's exports if it does not raise the value of its yuan.
They charge that China's currency is undervalued by at least 25 percent, effectively subsidizing China's exports and taxing its imports.
A group of 130 lawmakers in the U.S. House of Representatives also urged President Barack Obama's administration this week to formally label China a currency manipulator in a Treasury Department report due on April 15.
The focus on China comes at a time of high U.S. unemployment and huge budget deficits that has put pressure on lawmakers to create jobs without adding to the debt.
Asked to clarify if the Indian government shared the view of Indian industry about China's exchange rate, Sharma said: "Well, industry is part of the country, so yes."
Some analysts believe China's currency policy has a more detrimental effect on developing country exporters than it does on the United States.
They say it enables China to outprice developing country competitors, both in their home markets and abroad.
In a separate interview, Canada's ambassador to the United States said he expected leaders of the Group of 20 rich and emerging economies to discuss China's exchange rate when they meet in Canada in late June.
"I'd be surprised if it wasn't discussed," Canadian Ambassador Gary Doer said.
China, India and the United States are all members of the G20, along with Brazil, Japan, Germany and others.
AP
