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China Says Yuan Revaluation Won't Solve U.S. Trade, Unemployment Problems

U.S. economic woes can’t be solved by a revaluation of the yuan and American leaders will “help no one” by politicizing the issue, Chinese Foreign Ministry Spokesman Qin Gang said.

The comments come as U.S. lawmakers urge President Barack Obama to keep pressuring China even after the June 19 announcement that it was lifting a two-year policy of pegging its currency to the U.S. dollar. U.S. Commerce Secretary Gary Locke reiterated this week the yuan is undervalued.

“The appreciation of the yuan cannot bring balanced trade,” Qin told reporters in Beijing. Yuan appreciation “cannot help to solve U.S. problems of unemployment, overconsumption and low savings rate.”

Democrats and Republicans in Congress said yesterday they will press legislation to let companies seek tariffs on imports to compensate for advantages a weak currency gives Chinese producers. Lawmakers including Senator Charles Schumer said during the Senate Finance Committee hearing yesterday the government has not done enough and Locke should move to levy tariffs now.

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