Chinese rebut US jab at yuan
By Anita Chang |
June 25, 2010, Friday
|
Print Edition
Print Edition
CHINA yesterday rejected the latest US accusation that its currency is undervalued, saying a stronger yuan will not ease America's yawning trade deficit as officials prepared to face off on the issue at the G20 Summit in Canada this weekend.
Ahead of the summit that brings together the biggest rich and developing economies, US Commerce Secretary Gary Locke told a Senate Finance Committee that the weak Chinese yuan continues to hurt American exports despite China's announcement it would loosen its controls on the currency.
Locke at Wednesday's hearing said President Barack Obama will raise currency and other trade issues in talks with Chinese officials, including President Hu Jintao, at the G20 gathering.
China announced on Saturday it would loosen its currency's peg to the US dollar. The change in stance could result in a stronger Chinese renminbi, as the yuan is also known, over time.
"I would like to stress the renminbi exchange issue is not the cause of the trade imbalance between China and the United States," Foreign Ministry spokesman Qin Gang told a regular news conference in Beining yesterday.
Qin said globalization of production was one reason for the trade imbalance, along with US restrictions on high-tech exports to China.
"We believe the appreciation of the renminbi cannot bring about balanced trade and cannot help the US solve its own problems of unemployment, over-consumption and a low savings rate," Qin said.
After Saturday's announcement of more flexibility, the yuan has been close to the same range as it was last week, weakening yesterday to 6.8113 to the US dollar from Wednesday's close of 6.8105.
China has ruled out any major revaluation for the yuan, saying the currency is at about the right level.
Ahead of the summit that brings together the biggest rich and developing economies, US Commerce Secretary Gary Locke told a Senate Finance Committee that the weak Chinese yuan continues to hurt American exports despite China's announcement it would loosen its controls on the currency.
Locke at Wednesday's hearing said President Barack Obama will raise currency and other trade issues in talks with Chinese officials, including President Hu Jintao, at the G20 gathering.
China announced on Saturday it would loosen its currency's peg to the US dollar. The change in stance could result in a stronger Chinese renminbi, as the yuan is also known, over time.
"I would like to stress the renminbi exchange issue is not the cause of the trade imbalance between China and the United States," Foreign Ministry spokesman Qin Gang told a regular news conference in Beining yesterday.
Qin said globalization of production was one reason for the trade imbalance, along with US restrictions on high-tech exports to China.
"We believe the appreciation of the renminbi cannot bring about balanced trade and cannot help the US solve its own problems of unemployment, over-consumption and a low savings rate," Qin said.
After Saturday's announcement of more flexibility, the yuan has been close to the same range as it was last week, weakening yesterday to 6.8113 to the US dollar from Wednesday's close of 6.8105.
China has ruled out any major revaluation for the yuan, saying the currency is at about the right level.
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