Geneva: The Chinese ambassador to the World Trade Organization today asked the US to take action to stabilise the dollar, which has fallen sharply in the past year.

During the biennial trade policy review of the world s largest economy by the World Trade Organisation, China also raised its concerns over "rising sentiment of protectionism" in the United States, saying that it could threaten global trade.

"As a major currency for international reserve, the dramatic depreciation of the dollar has lead to shrinking national reserve of many countries and reduced social welfare," China's ambassador to the WTO, Sun Zhenyu, said.

"In this connection, China hopes that the United States ... Could take quick and targeted actions to stabilise the US dollar. We hope the US will not tell us this time as they did in the early 1970s to the Europeans, that it is our currency, but it is your problem ."

The euro was trading at about 1.58 dollars in early European trading from 1.34 dollars one year ago.

The ambassador also pointed to a recent move by the US Congress to pass a Farm Bill that maintains high agricultural subsidies, noting what it calls "rising sentiment of protectionism" in the US.

"China therefore is very much concerned that, if this tendency of protectionism grows unchecked, it may become a threat to the global trade and the multilateral trading system," it said.

In its review of the US trade policies, the WTO also urged the US not to give in to protectionism in the country s attempt to reduce its massive trade deficit.

It warned against any pressures for protective barriers to reduce imports, saying the US should work instead to expand its exports to balance the account.

Source : PTI