The US government on Friday rejected a petition calling for a investigation into alleged unfair trades practices stemming from the undervaluation of the Chinese yuan.
Richard Mills, a spokesman for the US Trade Representative ( USTR) said in a statement that "we do not believe that a Section 301 action is an appropriate or a productive way to achieve that goal," adding that US Treasury Secretary John Snow's diplomacy is the proper venue for the matter of China's currency. Snow has said for several times that China should change currency practices
The latest petition under section 301 of US trade law sought to impose sanctions on China for distorting trade.
Chinese Premier Wen Jiabao said recently that China regards the reform of the exchange rate of Renminbi (RMB) as an issue of sovereignty and will never yield to any external pressure to change it.