China official: dollar printing causing inflation

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China official: dollar printing causing inflation

China trade minister says excess printing of US dollars causing inflation shock

Elaine Kurtnbach, AP Business Writer, On Wednesday October 27, 2010, 5:55 am EDT

SHANGHAI (AP) -- Out-of-control printing of the U.S. dollar is forcing inflation on China, pushing up prices for commodities and labor, trade minister Chen Deming says in an escalation of rhetoric over currency and other tensions ahead of key international meetings.

Beijing has been chafing at U.S. pressure over its currency and massive imbalances in trade and investment that are symptomatic of deeper problems in the world economy -- Asia and China's addiction to weak currencies to boost their export-reliant economies and the legacy of debt-fueled consumption in the U.S.

Fearing a trade war that could send the world economy into reverse, finance chiefs from the Group of 20 leading advanced and developed nations last weekend vowed to avoid weakening their currencies. But they did not set specific targets for reducing imbalances such as China's huge trade surplus and the U.S. trade deficit.

"Uncontrolled printing of dollars and rising international prices for commodities are causing an imported inflationary 'shock' for China and are a key factor behind increasing uncertainty," the state-run newspaper China Business News quoted Chen as saying while attending the autumn session of the Canton Trade Fair.

http://finance.yahoo.com/news/China-official-dollar-apf-1263355013.html?x=0