China Hardened Its Opposition Over A Rapid Appreciation Of The Renminbi
China has hardened its opposition to a rapid appreciation of the renminbi, telling off European Union leaders to tone down
their attacks on its currency and setting the stage for a confrontation over exchange rates at this week’s international
monetary meetings in Washington. China said that if the renminbi is to allow to appreciate by 20-40% against the US
dollar as some people are calling for, many of its factories will shut down and society will be in turmoil. As a result,
China said that it will stick to its policy of gradually increasing the currency’s flexibility. China has capped the renminbi’s
rise at 2% since adopting a more flexible exchange rate system. This prompted US House of Representatives to pass
a measure on 29 September that would let US companies seeking import duties to prevent Chinese manufacturers from
using an artificially weak renminbi as a competitive tool. The measure will not go to the Senate until after US
congressional elections in November.
Tracking The World Economy... - 07/10/2010
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