U.S. urges China to stop "unfair" currency policies

PanARMENIAN.Net - The U.S. ambassador to China on Monday, March 19, urged Beijing to end its "unfair" currency policies and stop discrimination against American firms, amid growing trade frictions between the two countries.

According to AFP, in a strongly-worded speech, Gary Locke called for fairness in US-China economic ties, reiterating criticism of Beijing's exchange rate policy, which Washington says makes the value of the yuan currency artificially low.

"Fairness... means ending discrimination against US companies, ending unfair trade preferences for domestic firms, ending what we see as unfair, distorting currency practices," Locke told U.S. and Chinese business and government officials.

Speaking at an annual event organized by the National Committee on United States-China Relations - a non-profit group - he also called for improved protection of intellectual property rights and a more open investment climate.

The value of the yuan has been a constant thorn in the side of bilateral relations, with the United States blaming China's currency controls for creating huge international trade imbalances. Beijing has repeatedly vowed to loosen its grip on the yuan but has rejected calls for a faster appreciation, for fear of hurting its vast manufacturing sector, a key driver of the world's second-largest economy.

Foreign firms have also repeatedly complained of discrimination when competing with domestic companies in China, particularly in the lucrative government procurement sector.

But Beijing has eased some rules that blocked foreign firms from the procurement market, which is said to be worth $1 trillion a year.