Blaming Economic Stagnation on China Irresponsible: NY Times

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Last updated at: (Beijing Time) Thursday, September 04, 2003

Blaming Economic Stagnation on China Irresponsible: NY Times

The New York Times, a leading US newspaper, said Wednesday that it would be irresponsible for US politicians to blame the US economic stagnation on China.

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The New York Times, a leading US newspaper, said Wednesday that it would be irresponsible for US politicians to blame the US economic stagnation on China.

In an editorial entitled "Fuzzy Economic Thinking", the paper said that "it would be irresponsible and inaccurate for American politicians to pin our economic sluggishness" on Beijing.

Recently, many in the United States, politicians in particular, have attributed US economic difficulties to what they called China's low exchange rate and have mounted their pressure on China to appreciate its currency, Renminbi or yuan.

But the paper noted that as the jobless rate in the United States is high and the presidential election is approaching, "it must be time to look east again for scapegoats."

"Japan is only starting to recover from its protracted recession, so China will be handed the role of economic villain in the coming election cycle," the paper said. "Expect to hear a chorus of presidential candidates blame unfair Chinese competition for the nation's manufacturing woes."

The paper said that a "sudden currency volatility could lead toa banking crisis that could spell disaster for the world economy."

"China's refusal to devalue its currency in the aftermath of the late 1990's financial crises in East Asia adds credence to its leadership's insistence that it prizes stability when it comes to exchange rates, not short-term advantage," the paper added.

China's decision not to devalue its currency in the crisis was much appreciated by its neighbors and the United States, the paper said.

The editorial noted that "it would also be silly to argue that exchange rates, as opposed to cheap labor and other factors, are the primary reason Americans buy three-quarters of their toys from China. Nor does a prospering China, by definition, cost America jobs."

The paper also pointed to the fact that "China's imports are growing at a faster clip than its exports, and the bulk of the exports registering in those eye-popping trade figures are goods built in China by the likes of Intel and America's automakers."

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