China calls on Japan, US, EU to avoid devaluation

BEIJING (AP) - China's commerce minister has called on other major governments to avoid suppressing the value of their currencies to boost exports, warning that could hurt global growth.

Mr Chen Deming was responding to a question at a news conference Friday about the Japanese yen's weakness but said his appeal also was directed at the United States and Europe.

The yen has fallen by about 20 per cent against the dollar since the middle of last year, prompting concern other governments might try to drive down their own currencies to keep exports competitive.

Mr Chen said, "I'm worried that 'competitive devaluation' will lead to oversupply of money and it will have a negative effect on global economic growth."