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Experts: Yuan exchange rate not to blame

2010-03-19 08:24 BJT

US politicians have long alleged that the Renminbi exchange rate is a key factor behind the trade imbalance between China and the US. However, at a seminar held by the Carnegie Endowment for International Peace in Washington D.C., participants rejected this idea, saying history has proven that China does not manipulate the exchange rate of the yuan.

US politicians have long alleged that the Renminbi exchange rate is a key factor behind the trade imbalance between China and the US.
US politicians have long alleged that the Renminbi exchange rate is a key
factor behind the trade imbalance between China and the US.

American economists attending the seminar say it's not a good strategy for the Chinese economy to let the yuan appreciate. They added that China's trade surplus does not indicate that the yuan is undervalued. They say a stable Renminbi has contributed a lot to the recovery of the global economy.

Professor Pieter Bottelier from John Hopkins University, said, "I don't think the term manipulation is suit to the Chinese situation at all. "