Beijing has warned again of a 'trade war' if the United States enacts a law making it easier to impose retaliatory tariffs on China for alleged currency manipulation.
Vice Foreign Minister Cui Tiankai told a media briefing yesterday - just before US lawmakers head towards a final Senate vote - that the currency bill would hinder global economic recovery and damage bilateral trade ties.
'This bill in no way represents the reality of the economic and trade relationship between China and the US, and it might have an adverse impact on the development of the commercial relationship,' Cui said.
'Should the proposed legislation become law, the only result would be a trade war between China and the US, and that would be a lose-lose situation for both sides.'
Cui said he would raise the issue with US Assistant Secretary of State Kurt Campbell in Beijing today, when they meet to discuss Asia-Pacific affairs.
'A sound and steady development of the overall relationship is the essential condition for communication and co-ordination between the two countries on Asia-Pacific affairs,' he said.
Beijing made similar warnings last week, after the US Senate voted to allow debate on the bill. US President Barack Obama also accused Beijing of unfair trade practices that hurt the American economy, but added that the bill could violate World Trade Organisation rules.
