China Urges U.S. to Drop Probe That Claims Yuan Undervalued
(Bloomberg) -- China said a preliminary U.S. ruling that it allegedly provided a trade subsidy to some exporters by undervaluing the yuan violated international rules.
The case relates to a U.S. investigation into Chinese exports of cable or twist ties, with the U.S. Department of Commerce imposing tariffs on the products after determining that producers are getting an unfair advantage because of the currency. China’s Commerce Ministry called on U.S. authorities to stop its investigation, while also disputing the preliminary finding.
“The move seriously violated relevant international rules,” China’s ministry said in a statement on its website Saturday, citing an unidentified official. “We hope the U.S. Department of Commerce will fully consider the evidence and counter opinions submitted by the Chinese side and correct the relevant wrong practices and conclusions.”
The claim by the U.S. that the yuan’s exchange rate to the dollar was undervalued by 5% in 2019 is “completely wrong” and isn’t supported by any analysis, the ministry said. It cited a U.S. Treasury report on the yuan for that figure, which wasn’t in the Commerce Department statement.
The U.S. ruled that cable-tie exporters from China received “countervailable subsidies” from the country’s undervalued currency and instructed American customs agents to collect cash deposits from importers of twist ties from China.
Last month, the U.S. imposed similar sanctions on Vietnamese exports of car and truck tires, citing the nation’s “undervalued currency.”
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