Chinese Vice Commerce Minister Chen Deming said on Wednesday
that if the Renminbi, China's currency, appreciated too rapidly, it
would cause fluctuations in the Chinese economy that would not be
positive for the world.
Chen made the remarks at a news briefing on the sideline of the
third China-U.S. Strategic Economic Dialogue, which opened in
Beijing Wednesday.
He said China was not against Renminbi appreciation but did not
want it to occur too rapidly, as this would not suit China's
conditions. "Some people in the world hope the Renminbi would
appreciate as fast as possible; these are irresponsible remarks,"
Chen said.
The Renminbi hit a new high against the U.S. dollar Wednesday,
when its central parity rate stood at 7.3647 yuan per dollar,
gaining 150 basis points from Tuesday's reference rate of
7.3797.
Chen said the appreciation of the Chinese currency would not
help ease the trade imbalance between China and the United
States.
The Renminbi has appreciated about 11 percent since China
de-pegged it from the U.S. dollar in July 2005, but the trade
surplus has not shrunk. The latest figures from Chinese Customs
show that between January and November, China-U.S. trade expanded
15.7 percent from the same period of last year, to 276.21 billion
U.S. dollars.
Chen also expressed concern over the continued depreciation of
the U.S. dollar, which he said would "drive up oil and gold prices
and reduce the assets of the countries or companies that hold the
currency," Chen said.
"So I hope the U.S. economy could be stronger, as well as the
U.S. dollar," he added.
(Xinhua News Agency December 13, 2007)
