Ministry: Renminbi exchange rate "not related" to imbalance
Ministry: Renminbi exchange rate "not related" to imbalance
14:09, November 16, 2009 
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Chinese government believes that it would be important to create a stable environment for the export sector by stabilizing macro policies and Renminbi exchange rate, said Yao Jian, spokesman of China's Ministry of Commerce November 16.
Since the end of the dollar pegging policy in July 2005, Renminbi has appreciated by 19 percent. Due to the global financial crisis, China's overseas market has contracted severely. New orders Chinese exporters received were short-term.
In the first ten months of 2009, China's trade surplus with the U.S. dropped 18 percent, and its total trade surplus dropped 27 percent, creating a good chance to stabilize Renminbi. Falling export and trade surplus have provided China with a chance to keep Renminbi exchange rate stable. However, the U.S. allowed the dollar to depreciate while requiring other countries to let their currencies appreciate.
"This will do no good to the world recovery and is also unfair," commented Yao.
Yao quoted Director-General Pascal Lamy of the World Trade Organization, that trade surplus doesn't mean trade interest. "It is already proved that Renminbi appreciation is not related to trade imbalance," Yao said.
He pointed out that world imbalance is in fact development imbalance. Decades ago, western countries had had huge trade surplus with developing countries. Only very recently, emerging countries in East Asia have seen trade surplus. "They have their chance and right to development."
As to the saying that "China is the manufacturer while the U.S. is the consumer", Yao said that China imported a lot from the U.S. As a developing country whose per-capita GDP is only 3,300 U.S. dollars, China doesn't have consuming power equal to the U.S.
"Renminbi exchange rate should not be related to imbalance, and some critiques against emerging countries in East Asia are unreasonable," the spokesman concluded.
By People's Daily Online
Since the end of the dollar pegging policy in July 2005, Renminbi has appreciated by 19 percent. Due to the global financial crisis, China's overseas market has contracted severely. New orders Chinese exporters received were short-term.
In the first ten months of 2009, China's trade surplus with the U.S. dropped 18 percent, and its total trade surplus dropped 27 percent, creating a good chance to stabilize Renminbi. Falling export and trade surplus have provided China with a chance to keep Renminbi exchange rate stable. However, the U.S. allowed the dollar to depreciate while requiring other countries to let their currencies appreciate.
"This will do no good to the world recovery and is also unfair," commented Yao.
Yao quoted Director-General Pascal Lamy of the World Trade Organization, that trade surplus doesn't mean trade interest. "It is already proved that Renminbi appreciation is not related to trade imbalance," Yao said.
He pointed out that world imbalance is in fact development imbalance. Decades ago, western countries had had huge trade surplus with developing countries. Only very recently, emerging countries in East Asia have seen trade surplus. "They have their chance and right to development."
As to the saying that "China is the manufacturer while the U.S. is the consumer", Yao said that China imported a lot from the U.S. As a developing country whose per-capita GDP is only 3,300 U.S. dollars, China doesn't have consuming power equal to the U.S.
"Renminbi exchange rate should not be related to imbalance, and some critiques against emerging countries in East Asia are unreasonable," the spokesman concluded.
By People's Daily Online
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