Legislation proposed by members of the US congress aimed at pressing China to speed up currency reform and rein in its trade surplus will "severely undermine" trade and damage bilateral relations, China's vice-premier has told US officials.

Speaking at the opening of a high-level "strategic economic dialogue" on Wednesday, Wu Yi warned against resorting to the protectionist measures proposed by some in Washington.
She said China's ballooning trade surplus was not a policy decision and that Beijing was undertaking measures to correct the imbalance.

But she said Washington should not blame China for structural problems with the US economy.

'Wrong approach'
"Obviously, to resort to trade protectionism and blame another country for the structural problems in the US economy is the wrong approach which would only harm the interest of the US itself," Wu said.

'Trade War'
The topic has become a hot political issue in the US with many politicians in congress saying China's managed currency policy makes its exports unfairly cheap, driving competitors out of the market and costing American jobs.

source:
http://english.aljazeera.net/NR/exeres/1E9E8302-3EAD-4A56-BD53-72C1DB59A...