New York, New York (PressExposure) March 29, 2010 -- "Mann International" is convinced that Beijing will react should the United States pronounce China a currency manipulator and impose trade sanctions.
The firm said that it did not consider recent comments made by Commerce Minister Chen Deming following a spate of highly publicized tensions over the Chinese Yuan's value to be empty threats.
On april 15, The US must rule on whether China is systematically suppressing the exchange rate value of its currency in a bid to derive competitive advantage on the world's export markets.
US Treasury Secretary Tim Geithner called China a currency manipulator soon after the Obama administration moved into the White House but later withdrew his statement. Since then, tensions have mounted between the two countries but the US has been careful to avoid antagonizing China because it is partly Beijing's continued demand for US treasuries and agency debt that is financing Washington's efforts to rebuild America's fragile economic recovery.
"Mann International" sources suggest that additional pressure could be imminent from Europe and other nations that trade with China. The general consensus is that the yuan is under-valued and that it should be allowed to float more freely.
When asked how "Mann International" thought China would react to a ruling against it, the source suggested that China could sell some of its holdings of US treasuries or even impose its own trade sanctions on US imports.