1 Sep 2010

US backs off putting heat on China over yuan

1:31 pm on 1 September 2010

The United States has decided against escalating a trade dispute with China.

The US government says it found insufficient evidence to probe allegations that China's undervalued currency constitutes a state subsidy.

The US government has been under pressure from American exporters who say the Chinese have an unfair advantage because of the value of its yuan, which makes their goods cheaper.

A professor of international business at Maryland University, Peter Morici, says the US, and Europe, face years of weak growth unless China relents and lets its currency appreciate.