Obama Protects US Economy by Urging China to Take Action on Yuan

Added by James Morley on September 25, 2010

Chinese prime-minister, Wen Jiabao, discussed yesterday, September 22, with his US counterpart Barack Obama about the value of the Chinese yuan.  President Obama requested to the Chinese premier to take action and address the dispute, while making it clear that the US will not be protecting its economic interest.

Recently, lawmakers from the United States moved further and threatened more explicitly that they could pass a legislation that would bring penalizations to China for the fact that it has kept its currency weak artificially. Many people, lawmakers and others, have been accusing China for quite a long time of undervaluing its currency to up to 40 per cent in order to support Chinese companies by giving them an advantage in trading. Critics have said that this has an impact both on the US employment and export.

National Security Council’s official, Jeffrey Bader, stated that the discussion between the two officials, Obama and Wen, was the most intense than all the previous ones and that the US president has made clear statements during the meeting to let the Chinese officials know that the administration is expecting to see a more significant movement in the following months.