Bush: US 'closely watching' Chinese currency

WASHINGTON (AFP) - US President George W. Bush said Thursday Washington was "watching closely" whether Beijing would allow the appreciation of the Chinese currency to help address the burgeoning US trade deficit with the Asian giant.

Amid demands in Congress for sanctions against Beijing, Bush expressed US concerns about the movement of the yuan currency during talks with Chinese Vice Premier Wu Yi and several other cabinet ministers at the White House.

"One of the issues that I emphasized to Madam Wu Yi as well as the delegation was that we're watching carefully as to whether or not they will appreciate their currency," Bush told reporters after the talks.

"That's all in the context of making it clear to China that we value our relationship but the 233 billion dollars trade deficit must be addressed. And one way is through currency revaluations," he said.

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Charles Rangel, the Democratic chairman of the US House of Representatives committee on ways and means which monitors trade issues, said the panel "has serious concerns about Chinas massive and constant interventions in the currency markets.

"Those interventions keep the value of the Chinese currency artificially low -- making exports from China relatively cheap and imports into China relatively expensive," he said in a statement to Wu during the talks.

http://www.afp.com/english/news/stories/070524213112.11ibftom.html

2 months is the threat we made last christmas when all our big treasury guys went over there.

It's not that far through those countries to Iran. Two are members of SCO and will probably let them right on through. The Chinese will defend Iran, since they are bidding for entry into SCO.

we have trillions in T-Notes (borrowed money america has borrowed with chinese owners holding the note), if they called these tnotes in, our economy would crash overnight.

this and their control of the yuan and the continual moving away from US dollar abroad, we're basically waking up tomorrow and saying 'morning boss' to a chinse man.

either way, bush is the paper tiger as Mao predicted of the US empire.

that statement is more true today than ever. all our pentagon might can be snuffed out in a few years of economic warring.

china truly is the super power that america once was.

those in government would understand the policy implications of that sooner than later..