EU-China tug-of-war hampers global recovery drive

EU-China tug-of-war hampers global recovery drive

BRUSSELS — Fears of a global currency war land centre-stage Wednesday as Europe and China warm up for crunch IMF talks with a head-to-head summit focused on the yuan which the West says is "undervalued."

The issue already overshadowed a meeting of 46 European and Asian leaders in Brussels on Monday and Tuesday, but now the European Union finally locks horns with Beijing over its role in shaping the value of China's currency.

I honestly don't see much coming of this except more BS. As the world markets still struggle to get the balance right. One way or another something has to give...

"The richest regions -- Europe, Japan and the United States -- have the most to lose, a report out Tuesday concluded, while emerging markets remain "very resilient."

The battle has only just begun."

I wrote this thread back in 24-6-2009. This is just another step closer...
China and US head for trade war?

China could face censure at the World Trade Organisation after the US and Europe lodged a joint complaint over its restrictions on raw materials exports

Europe and the United States announced last night co-ordinated action against China for busting World Trade Organisation (WTO) rules by restricting exports of essential raw materials, raising fears of a damaging east-west trade war in the depths of the global recession.

Ron Kirk, the US trade representative, accused Beijing of putting a "giant thumb on the scale" by restricting exports of commodities including silicon, coke and zinc, to give Chinese manufacturers an unfair advantage over their international rivals. "It's our job to make sure we remove that thumb from that scale," he said in Washington. "Today's action is proof of our commitment to level the playing field in this area."