Fed Reserve Chief Greenspan feels tariffs, Yuan revaluation of no help
24 Jun '05
1 min read
Federal Reserve Chairman Alan Greenspan said the strategy to revalue China's yuan would in no way boost manufacturing activity in the United States, nor save homeland-based jobs.
He was testifying at the Senate Finance Committee, where he said, “I am aware of no credible evidence that supports such a conclusion”.
Warning that use of protectionist measures will harm the interests of USA, he maintained that the 'bloated' US trade deficit will remain unaffected by Yuan's revaluation.
With some lawmakers insisting on imposition of 28 percent tariff on goods from China, Greenspan said the move would only result in surge of cheaper imports from elsewhere.
“A policy to dismantle the global trading system, in an effort to protect jobs from competition, would rebound to the eventual detriment of all US job-seekers, as well as millions of American consumers," added Greenspan.
Since April, the White House placed limits on textile imports from China and threatened to brand China as "a currency manipulator" till it changes its policies.
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