Chinese Ministry Denies Geithner’s Currency Claims

By IAN JOHNSON and SHEN HONG, The Wall Street Journal

BEIJING — A Chinese ministry Saturday strongly denied Obama administration claims that China “manipulates” its currency, as the first contact between the new administration and China takes a markedly sour tone.
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On Thursday, President Obama’s nominee for Treasury secretary, Timothy Geithner, told U.S. lawmakers that President Barack Obama, “backed by the conclusions of a broad range of economists — believes that China is manipulating its currency.” No Chinese official of Mr. Geithner’s standing has fired back — a move analysts say shows that China doesn’t want to overreact to the statement — but Saturday morning an official from China’s Ministry of Commerce said “we never have used currency manipulation or exchange-rate manipulation as a mains to gain an advantage in international trade.” The statement, provided by an official from the ministry’s news department, also said China would not “rely on devaluations” of its currency, the yuan, to promote exports.

Some Chinese commentators say the verbal sparring is a sign of greater trade friction to come with Washington. They noted that both sides’ comments were written, not spoken — and therefore should be taken as a serious view of intent. Read more….