Greenspan speaks against sanctions on Chinese imports
June 23, 2005
Federal Reserve Chairman Alan Greenspan said today in testimony before the finance committee of the US Senate that trade sanctions against China would not hold any advantages for the United States.
The hearings grew out of increasing concerns about China on the subjects of that nation’s exports and it’s current high interest in investing in US companies. The hearings are especially relevant in light of China state-controlled National Offshore Oil Corporation’s almost $20 billion bid Wednesday for US oil company Unocal.
Mr. Greenspan addressed a couple of issues, including the imposition of proposed tariffs against China and revaluation of China’s currency. Tariffs would not have any effect in protecting jobs in the US, Mr. Greenspan said, because lower imports from China would only mean that more good would be imported from other low-cost markets in Asia and Latin America.
Instead, the tariffs would threaten growth in living standards worldwide, including in the United States.
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