Recently a well-known American economist, said China's massive intervention in currency markets, the history may be the most serious state of trade protectionism.

U.S. director Fred Peterson Institute for International Economics? Bergsten said: "China is at least five large-scale intervention in the foreign exchange market within a day, buy at least $ 1 billion to ensure that the strength of the dollar and the yuan weak. "

He said: "This is World War II, so far the largest country in the world trade protectionism measures, and perhaps ever (the largest trade protectionist measures)."

Bergsten estimates, China's intervention in currency markets led to the RMB is undervalued against the dollar by at least 20%.

He pointed out that this is equivalent to "all Chinese exports to provide 20% subsidy to all imported goods impose a 20% additional tariffs."

Bergsten once again urged the U.S. Treasury Department official to China as a currency manipulator, while Obama took office, U.S. authorities have rejected such a move five times.

Bergsten and suggested a number of other ways to respond, such as the United States on China's intervention in currency markets to the World Trade Organization (WTO) proceedings, and if successful, stringent restrictions on China into the U.S. market.

Or "We can enable 'confrontational exchange rate intervention' to buy China's yuan, the Chinese purchase of U.S. dollars to offset the impact of the exchange rate."

Bergsten 1969-1981 years in the White House has held several positions with the Ministry of Finance, has long been a critic of China's exchange rate policy.

This chaptersource:China Trade Information (http://en.zgxu.com),please visit the above web site source for more similar articles.