US business chief optimistic over yuan reform (Agencies) Updated: 2005-05-20 08:57
WASHINGTON - The head of the top business lobby in the United States
expressed confidence that China would adopt currency reform by the end of the
year, on his return from a high-level visit to that country.
![Thomas Donohue, president of the US Chamber of Commerce, expressed confidence that China would adopt currency reform by the end of the year, on his return from a high-level visit to that country.(AFP](xin_510502200906031164404.jpg) Thomas Donohue,
president of the US Chamber of Commerce, expressed confidence that China
would adopt currency reform by the end of the year, on his return from a
high-level visit to that country. [AFP] | Thomas Donohue, president of the US Chamber of Commerce, urged Congress not
to antagonize China by proposing unreasonable laws over Beijing's persistent
reluctance to relax its fixed currency regime.
The United States and many of China's trading partners argue that the yuan,
which is fixed to the US dollar, gives Chinese exports an unfair advantage,
especially after the sharp depreciation of the US dollar over the last year.
"It is a significant issue, I have talked to some people," Donohue told a
media briefing of his four day trip to China trip this week, during which he met
Prime Minister Wen Jiabao, Foreign Minister Li Zhaoxing and Commerce Minister Bo
Xilai.
"I got a very clear sense they understand the issue ... they told me about
the investments they were making in their banks and other things and I therefore
believe that there is a high probability they will take responsible action in
mid-level time," he said.
Donohue said he expected "something done by the end of the year."
"I think we should keep the heat on with good manners and I think we will get
some movement," he added.
China, which has fixed its yuan currency in a narrow band at around 8.28 to
the dollar for the past decade, is under fierce US pressure to float the yuan.
One measure being considered by the US Congress would impose a 27.5 percent
tariff across the board on Chinese imports if the peg does not go within six
months.
Donohue called the legislation a "stupid bill," saying the proposed measures
went against the principles of the World Trade Organization, the global trade
watchdog, of which the United States are China are both members.
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