China’s strong response to US pressure on yuan

Referring to resumed discuss on yuna’s rate, part of western scholars and country leaders reproached China deliberately undervalues the yuan for its export booming, some of them even fabricated the story of “yuan threat over the world”. Consequently, spokesman of the Ministry of Commerce Yao Jian  announced 16 it makes no sense at all to speculate yuan’s rate only based on trade deficits and surplus amid <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />China and US.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

As reported, 130 US Congress members have signed to ask its Treasury Secretary and the Secretary of Commerce to “impose China giving up rate manipulating for export growth in undervalued yuan”. What is more they even appealed for antidumping duties levied on Chinese goods and “exchange manipulator” imposed on China.  In this case, Yao Jian points out trade surplus is by no means the reason for yuan rises”, it is just meaningless quarreling yuan’s rate in use of trade gaps.

Yao says it sounds unreasonable that yuan’s rate dominating America’s recovery. “We hope America should be the advocator for free trade rather than the opponent to curb free trade. It is the behavior of egotism to impose others to revaluate when eyeing the self-interest of ones own”. Meanwhile we will try to expand import from abroad to enlarge domestic demand.  Yao also indicates politicalizing the issue of exchange rate is not helpful to all-round coordination in facing the global crisis.