China Daily, March 12, 2010

BEIJING - The United States should not make a political issue out of the yuan, a Chinese central banker said on Friday, as the two countries lurched towards a potentially serious clash about Beijing's currency regime.

People's Bank of China Vice Governor Su Ning was responding to a question about remarks on Thursday by US President Barack Obama, who called on China to move to a "more market-oriented exchange rate".

Wall Street Journal Business, March 11, 2010

WASHINGTON (Dow Jones)--President Barack Obama said Thursday the world would benefit if China moved to a more market-based currency system.

"As I've said before, China moving to a more market-oriented exchange rate would make an essential contribution to that global rebalancing effort," Obama said in remarks prepared for delivery at the U.S. Export-Import Bank's annual conference.

Obama, who rarely comments on currency matters, said a change in China's foreign-exchange rate would help the Group of 20's broad drive to rebalance the global economy, with countries with external surpluses, like China, boosting consumption and domestic demand and countries with external deficits, like the U.S., saving and exporting more.

The president's remarks also come a month ahead of a semiannual Treasury Department report that could designate China as a currency manipulator.

With Release of New Trade Deficit Figures, Sen. Brown Urges Obama Administration to Designate China as a Currency Manipulator

In Letter to Treasury Sec. Timothy Geithner, Brown Urges that China be Designated a Currency Manipulator in Semiannual Report

March 11, 2010

WASHINGTON, D.C. - With today's release of new trade deficit figures showing an $18.3 billion increase last month in our trade deficit with China, U.S. Sen. Sherrod Brown (D-OH) today wrote to U.S. Treasury Secretary Timothy Geithner urging him to designate China as a currency manipulator. Brown argued that the artificial devaluation of the Chinese currency has damaged the American manufacturing industry.

The following article written by Javier Hernandez appeared in the NY Times online here. 

President Obama on Thursday announced a broad effort to promote American goods overseas, hoping to bolster competitiveness abroad and create jobs in the United States.

But trade specialists questioned whether the plan had the potential to double exports in five years and create two million jobs - the president's goal - saying the major challenge would be to overcome stiff trade barriers and create new markets.