54.China: Currency Dispute Will Not Lead To Trade War - Commerce Ministry

China: Currency Dispute Will Not Lead To Trade War - Commerce Ministry

November 1, 2010

An intensifying currency dispute may disrupt the global economy but is unlikely to cause a full-blown trade war, Reuters reported Nov. 1, citing a statement on the Chinese Commerce Ministry website. The U.S. dollar will continue to weaken, and “gaming” between major currencies will escalate, increasing risks for businesses and affecting global trade development, the statement said. However, tensions will be eased as nations try to increase exports to beef up their economies and as entities like the World Trade Organization handle disputes, the statement said, adding that no country is willing to seriously stoke trade conflict. For its part, China will try to balance global trade flows by increasing imports of advanced technology and resources, the statement said.