US accuses China of keeping its currency artificially low.
Low-cost Chinese jewellery and watch imported into the UK from China could be at risk as the US accuses China of keeping its currency artificially low.
The US has accused China of giving itself an export advantage by keeping its currency at an artificially low level. The Beijing administration is sitting on a $2.6 trillion surplus in currency reserves while the US has a $4.7 trillion deficit.
UK Prime Minister David Cameron has joined in with pleas from the US for China to reevaluate its currency. Speaking at the end of a trade mission to China, Cameron urged China to allow the yuan to rise in value to make other countries’ exports more competitively priced.
The so-called international “currency war” will be one of the discussions at the G20 summit in South Korea this week.