Foreign pushes on yuan cited as protectionist
Source: Xinhua |
March 15, 2010, Monday
|
Print Edition
Print Edition
PREMIER Wen Jiabao said yesterday calls from the United States and other big economies for China to lift the value of the yuan were unhelpful and even protectionist.
He pledged that China would steer its own way on currency reform through a risky economic landscape.
"We oppose mutual accusations between countries, and even using coercion to force a country to raise its exchange rate, because that's of no help to reforming the yuan exchange rate," Wen said.
"We don't believe the yuan is undervalued. A country's exchange rate policy and its exchange rates should be decided by its national economic situation."
Wen said China would further improve the exchange rate formation mechanism and keep the yuan at a reasonable and balanced level.
He told a post-parliamentary session press conference that a stable yuan played an important role in facilitating the recovery of the crisis-racked global economy.
"We did not depreciate the RMB from July 2008 to February 2009 when the global economy was in extreme trouble, but it appreciated in real terms by 14.5 percent," he told hundreds of domestic and foreign journalists.
In this time, Wen said, China's exports fell by 16 percent but imports only by 11 percent and its trade surplus decreased by US$102 billion.
China had exports from 37 countries last year, of which 16 increased, he said.
"Taking Germany as an example, its exports to China hit a record high of 76 billion euros last year (US$104.56 billion)," Wen said.
"The US saw its total exports down by 17 percent, while its exports to China fell by only 0.22 percent."
Total exports from the European Union plummeted by 20.3 percent in 2009, compared with a 15.3 percent decline in exports to China.
China was a major market for exports from neighbors, including Japan and South Korea, as well as Europe and the US, he said.
Wen said protectionism worsened as the global financial crisis deepened.
"Some countries' moves to shore up exports are understandable," he said.
"But what I cannot understand is they devaluate their own currencies while pushing for the appreciation of other currencies. I think this is protectionism."
Wen said he was "a staunch supporter of free trade."
He pledged that China would steer its own way on currency reform through a risky economic landscape.
"We oppose mutual accusations between countries, and even using coercion to force a country to raise its exchange rate, because that's of no help to reforming the yuan exchange rate," Wen said.
"We don't believe the yuan is undervalued. A country's exchange rate policy and its exchange rates should be decided by its national economic situation."
Wen said China would further improve the exchange rate formation mechanism and keep the yuan at a reasonable and balanced level.
He told a post-parliamentary session press conference that a stable yuan played an important role in facilitating the recovery of the crisis-racked global economy.
"We did not depreciate the RMB from July 2008 to February 2009 when the global economy was in extreme trouble, but it appreciated in real terms by 14.5 percent," he told hundreds of domestic and foreign journalists.
In this time, Wen said, China's exports fell by 16 percent but imports only by 11 percent and its trade surplus decreased by US$102 billion.
China had exports from 37 countries last year, of which 16 increased, he said.
"Taking Germany as an example, its exports to China hit a record high of 76 billion euros last year (US$104.56 billion)," Wen said.
"The US saw its total exports down by 17 percent, while its exports to China fell by only 0.22 percent."
Total exports from the European Union plummeted by 20.3 percent in 2009, compared with a 15.3 percent decline in exports to China.
China was a major market for exports from neighbors, including Japan and South Korea, as well as Europe and the US, he said.
Wen said protectionism worsened as the global financial crisis deepened.
"Some countries' moves to shore up exports are understandable," he said.
"But what I cannot understand is they devaluate their own currencies while pushing for the appreciation of other currencies. I think this is protectionism."
Wen said he was "a staunch supporter of free trade."
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