China warns of trade war if U.S. bill passes

China warns of trade war if U.S. bill passes

* Beijing accuses U.S. senate of "politicising" trade issues

* Warns of trade war, says bill would violate WTO rules

* Forcing the yuan higher would damage world recovery

* Says bill will not address underlying economic problems (Adds analyst quote, Xinhua commentary, links)

By David Stanway and Aileen Wang

BEIJING, Oct 4 (Reuters) - An angry China warned Washington on Tuesday that passage of a bill aimed at forcing Beijing to let its currency rise could lead to a trade war between the world's top two economies.

http://www.reuters.com/article/2011/10/04/usa-china-idUSL3E7L40IA20111004