保定汉庭快捷酒店电话:RMB appreciation will not ease US troubles

(People's Daily Overseas Edition)
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Edited and translated by People's Daily Online
Beijing, Nov.16 (People's Daily Online) -- Chinese President Hu Jintao made it clear when meeting with U.S. President Barack Obama in Hawaii that the RMB exchange rate is not the cause of structural problems facing the United States, such as trade deficit and unemployment, and even if the RMB dramatically appreciates against the U.S. dollar, it will not address the problems.
In fact, the RMB exchange rate against the U.S. dollar has appreciated by about 30 percent since July 2005, while the unemployment rate in the United States has increased from 7 percent to 9 percent during the same period.
China's import growth rate has remained higher than its exports growth rate over recent years, with a month-on-month and year-on-year reduction in the trade surplus. China's current trade surplus accounts for only 1.4 percent of its GDP, which has already fallen to an internationally recognized rational level.
Customs statistics show that China's trade value was up 24 percent to about 3 trillion U.S. dollars in the first 10 months of 2011. Of them, exports value was up 22 percent to 1.55 trillion U.S. dollars and import value was up about 27 percent to 1.43 trillion U.S. dollars, marking a 15 percent drop in the trade surplus totaling 124 billion U.S. dollars.
The data has fully displayed that to achieve a balanced growth in foreign trade, China has accelerated the pace of adjusting its economic structure and striven to increase imports through boosting domestic demand amid the process of promoting the RMB exchange rate reform in a stable manner.Given the uncertainties in global economic recovery, the exchange rates of the world's major economies should not be adjusted drastically. The short-term sharp appreciation of the RMB will lead to catastrophic consequences, not only seriously distorting the normal course of economic development and plunging the world economy, financial markets and trade order into serious disorder but also posing a negative impact on the U.S. economy.
The processing trade accounts for nearly 80 percent of China's trade surplus with the United States, and 60 percent of the trade surplus is from U.S.-invested enterprises. Foreign-invested enterprises, whose products are sold all over the world, have reaped super profits by using China’s cheap labor and natural resources, while unfairly scapegoating China for their countries’ trade deficit.
China is willing to increase imports from the United States to achieve bilateral trade balance, but the United States has restricted or even banned the export of many commodities, which has led to a loss of nearly 100 billion U.S. dollars in exports to China.
Many Chinese enterprises are willing to invest in the United States, which will boost the country's employment. However, they are often subject to discriminatory treatment by the U.S. government in the name of safety or national security.
The aforementioned facts have shown that the trade problems between China and the United States were caused by multiple complex factors, and the two countries should take comprehensive measures to properly solve these problems under the principle of mutual respect and win-win cooperation. It would be unfair and unreasonable to keep pressuring China to revalue its currency.
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