China is not mincing words on the currency manipulation bill moving to the US Senate this week.
In a press conference in Beijing on Tuesday, China's Vice Foreign Minister Cui Tiankai said the legislation would spark a trade war, and further damage the US economy.
"Should the proposed legislation be made into law, the result would be a trade war and that would be a lose-lose situation for both sides," said Vice Foreign Minister Cui Tiankai. "It would be detrimental to the development of economic ties and might have an adverse impact on bilateral relations."
The US-China spat over the value of the yuan has been simmering for years, heating up at different periods. Critics in the US and other countries maintain that China keeps its currency artificially for a trade advantage. These are some of the strongest words from Beijing yet in the ongoing currency spat. Despite the threat, congressional pressure my be having an impact, however, as illustrated by a sharp rise in the value of the yuan on Monday -- up 0.6 per cent against the US dollar.