08-10-2011

The reality of the world is that China in reality wants to be left alone to do the things they think are good for their country. However that flies into the face of the Western Countries who see the growth and the plans of China as a threat to their cosy control of the world. Now they have turned directly against China with the USA as usual in front close followed by their slave countries the Europeans.



America wants to introduce an anti-China currency bill. An absurdity it is but also a desperate move by the Americans to keep control on the fast fallen dollar. China has warned of a potential trade war with the US if Washington lawmakers decide to pass a proposed anti-China currency bill.
The bill, if passed, would allow Washington to impose duties on Chinese goods imported to the US to punish Beijing for allegedly undervaluing its currency.



That America is serious can be seen out of their actions against the Euro. Naive people are still thinking that it is the EU that created the problems themselves, however the USA bankers broke the banks in the EU, and the USA rating agencies are demolishing the Euro in such a way that the EU has no direct answers to it. If they would come dangerous close to solve the problem in such a way that the danger level for the Euro would be disappearing then the Rating agencies will be given to order the investigate and lower the ratings of those countries, those banks that would be able to support the EU decisions, and as we have seen the rating agencies depending on which bank consortium they represent in reality, although they will say that they are in depended.



The Chinese government have already blasted the currency bill in three statements released simultaneously by the foreign ministry, the central bank and the ministry of commerce.
“By using the excuse of a so-called ‘currency imbalance’, that bill escalates the exchange rate issue, takes protectionist measures, gravely violates the rules of the World Trade Organisation and severely upsets China-US economic and trade relations; China expresses firm opposition to it,” said Ma Zhaoxu, foreign ministry spokesman.



China’s central bank said that the bill would not solve US economic problems such as insufficient savings, a large trade deficit and a high unemployment rate, “but it may seriously affect the entire progress of China’s reform of its yuan exchange rate regime and also lead to a trade war, which we would not like to see.” A trade war would be on this stage more dangerous for the US then for China although in a very short period of time it would like as of the negativity is for the Chinese, however their inland increasing trade would in a short period of time ease the balance of growth for the Chinese. If so this would be a serious negative effect for the US trade in a longer period of time as the Chinese population would slowly increase in living standards and would more consume from China's own productions. The Chinese ministry of commerce was right when they said that the US moves aimed at forcing an appreciation of the Chinese currency would undermine joint efforts to revive global economic growth.



It seems that the US is set on to irritate the bilateral ties, which Washington and Beijing have tried hard to keep on track in the past. Last month, Beijing warned that a US decision to sell Taiwan upgrades for its aging air force, worth $5.85bn, would have a negative impact on bilateral military exchanges. This next to the irritation of increased US patrols around the Chinese islands in Chinese waters, the constant spy patrols by US planes it all counts to an increasing aggression against the Chinese, who have not forgotten the US instigated riots on the Chinese Muslim borders or the US support for the Daila Lama in the Tibet question.



The US must be gambling on their nuclear arsenal in case of an armed confrontation, however even with that the balance of the West of less then an Billion against the East of near two Billion would be an conflict that even the US must doubt of they would be able to win that one, hence their support for Chinese minorities in the hope that they can create an second Russian situation and split the country. The fast aggression of the Chinese authorities will no doubt avoid such a situation which would be dangerous for the US as two can play the same game.



Xi Jinping, China’s vice president who is expected to take over from Hu Jintao as president and top Communist party leader in late 2012, is scheduled to visit Washington later this year after hosting US vice president Joe Biden in China in August. The Chinese reiterated their long-held view that its currency was not the main reason for imbalances in the bilateral trade relationship.
While US businesses in China frequently complain about the lack of a level playing field in China, but then again the Americans always complain when they cannot get what they want, have said Chinese foreign exchange policy is not their main concern and they would prefer the US government to focus on topics such as government procurement and the protection of intellectual property rights when lobbying Beijing on their behalf.



The Chinese urged US lawmakers to refrain from “politicising” the issue and consider that economic and trade exchanges were the basis of and an important driving force behind a mutually beneficial bilateral relationship. However, it will be doubtful of the US will listening to the Chinese; they are by definition to full of themselves then to wanting to allow others to have the benefit of strong bilateral relationship.



If the US Senate would pass the legislation, the White House’s would use their ability to skirt a tough decision on whether to veto the bill. So far the Republicans have been reluctant to take up China currency legislation in this Congress. Even they realise that the playing fields on this moment are not in favour of the US and that the Chinese could inflict the last stab to finish off the economic up turn in the US. Wit elections around the corner even the Republicans do want to get the feeling that their decision will come down on them like a ton of bricks. It would put Obama into the White House for another four years, and neither they nor the American population can stomach that.