| converged media |

Resources for the modern journalist. From Loose Wire

Chunks in Action: China Currency

Here’s a Reuters story from January 2009 on a row between China and the U.S. over the yuan.

China hits back at U.S. in currency row

By Chris Buckley

BEIJING (Reuters) – China’s central bank on Saturday said U.S. accusations that it was manipulating the yuan currency were misleading, a day after Beijing cautioned incoming Secretary of State Hillary Clinton to handle their ties with care.

The remarks from Su Ning, a vice governor of the People’s Bank of China, were the bank’s first public reaction to comments from U.S. Treasury Secretary-designate Timothy Geithner, who said this week that Beijing was manipulating its currency exchange policies to gain an unfair trade advantage.

"These comments are not only out of keeping with the facts, even more so they are misleading in analyzing the causes of the financial crisis," Su said of Geithner’s comments to the Senate Finance Committee, according to the official Xinhua news agency.

The exchange marks a testy start to ties between Beijing and the Obama administration, which may tarnish vows of cooperation in combating the global economic slowdown and security threats.

"China wants a good start with Obama, but trade conflicts are the one issue most likely to hurt this," said Shi Yinhong, an expert on ties between the two nations at Renmin University in Beijing. "Now our diplomacy is conditioned by the financial crisis."

China worries that its already slowing exports will be even harder hit by U.S. policies to narrow their trade imbalance.

Many U.S. lawmakers believe the yuan is much undervalued, giving Chinese exporters a big advantage that they blame for U.S. job losses and the U.S. trade deficit, which hit a record $256.3 billion in 2007.

Su did not directly accuse Geithner of trade protectionism. But the Chinese official’s warning was clear enough.

"We believe that faced with the financial crisis there should be a spirit of self-criticism," Su said while visiting a business newspaper’s office in Beijing, according to Xinhua.

"The international community is currently working together in actively responding to the financial crisis, and it must avoid exploiting different excuses for renewing or encouraging trade protectionism, because these are of no help in withstanding the financial crisis."

Su’s swipe came after China’s Foreign Minister urged Clinton to be careful with sensitive issues that could strain ties, calling the relationship between their two nations one of the world’s most important.

Foreign Minister Yang Jiechi made the remarks to Clinton, settling into her new job as Washington’s top diplomat, in a telephone call on Friday, the Chinese Foreign Ministry website (www.fmprc.gov.cn) reported on Saturday.

Let’s break it down into chunks:

CHUNK 1: The new angle (and a bit of context to show this follows on the heels of another warning)

BEIJING (Reuters) – China’s central bank on Saturday said U.S. accusations that it was manipulating the yuan currency were misleading, a day after Beijing cautioned incoming Secretary of State Hillary Clinton to handle their ties with care.

CHUNK 2: The context, explaining what China is reacting to (and who, exactly, is making the remarks. By putting this in the second chunk the lead is kept short and pithy.)

The remarks from Su Ning, a vice governor of the People’s Bank of China, were the bank’s first public reaction to comments from U.S. Treasury Secretary-designate Timothy Geithner, who said this week that Beijing was manipulating its currency exchange policies to gain an unfair trade advantage.

CHUNK 3: The quote, which conveys the tone of the official’s remarks, and puts the key word ‘misleading’ right into the mouth of the official.

"These comments are not only out of keeping with the facts, even more so they are misleading in analyzing the causes of the financial crisis," Su said of Geithner’s comments to the Senate Finance Committee, according to the official Xinhua news agency.

CHUNK 4: More context, making the important point that this is rocky beginning to Obama’s relationship with China.

The exchange marks a testy start to ties between Beijing and the Obama administration, which may tarnish vows of cooperation in combating the global economic slowdown and security threats.

"China wants a good start with Obama, but trade conflicts are the one issue most likely to hurt this," said Shi Yinhong, an expert on ties between the two nations at Renmin University in Beijing. "Now our diplomacy is conditioned by the financial crisis."

CHUNK 5: More context, explaining China’s perspective.

China worries that its already slowing exports will be even harder hit by U.S. policies to narrow their trade imbalance.

Many U.S. lawmakers believe the yuan is much undervalued, giving Chinese exporters a big advantage that they blame for U.S. job losses and the U.S. trade deficit, which hit a record $256.3 billion in 2007.

CHUNK 6: And back to the official, elaborating on what he had to say.

Su did not directly accuse Geithner of trade protectionism. But the Chinese official’s warning was clear enough.

"We believe that faced with the financial crisis there should be a spirit of self-criticism," Su said while visiting a business newspaper’s office in Beijing, according to Xinhua.

"The international community is currently working together in actively responding to the financial crisis, and it must avoid exploiting different excuses for renewing or encouraging trade protectionism, because these are of no help in withstanding the financial crisis."

CHUNK 7: And we need to flesh out the reference in the lead to the Clinton caution:

Su’s swipe came after China’s Foreign Minister urged Clinton to be careful with sensitive issues that could strain ties, calling the relationship between their two nations one of the world’s most important.

Foreign Minister Yang Jiechi made the remarks to Clinton, settling into her new job as Washington’s top diplomat, in a telephone call on Friday, the Chinese Foreign Ministry website (www.fmprc.gov.cn) reported on Saturday.

Advertisements

2 Responses

  1. […] Chunks in Action: China Currency […]

  2. […] Chunks in Action: China Currency […]

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Pages

twitter

RSS Loose Wire blog

  • An error has occurred; the feed is probably down. Try again later.

del.icio.us

%d bloggers like this: