Wednesday, October 27, 2010

UPDATE 1-China minister says dlr printing out of control | Reuters

* China commerce minister says dollar printing hurting China

* Says exporters are prepared for exchange rate changes

* Says export growth next year to be stable, imports to soar

BEIJING, Oct 26 (Reuters) - Dollar issuance by the United States is "out of control", leading to an inflation assault on China, the Chinese commerce minister said in comments reported on Tuesday.

Chen Deming, speaking at a trade fair in southern China, said that exporters had done a good job of preparing themselves for exchange rate changes as well as rising labour costs, but were suddenly confronted with new challenges.

"Because the United States' issuance of dollars is out of control and international commodity prices are continuing to rise, China is being attacked by imported inflation. The uncertainties of this are causing firms big problems," Chen was quoted as saying by the official Xinhua news agency.

Chinese officials have criticised U.S. monetary policy as being too loose before, but rarely in such explicit language.

More on the currency wars ...

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