Ministry: Don't blame yuan for US trade deficit

Beijing, Nov.17 (People's Daily Online) -- Accusations on China's exchange rate are groundless and unreasonable, and the value of the yuan isn't the cause of lopsided trade flows, Ministry of Commerce (MOC) spokesman Shen Danyang said Wednesday here in Beijing.

China's currency policy came under fire at an APEC summit in Hawaii when U.S. President Barack Obama said "enough is enough" on what America views as an inadequate appreciation of the yuan.

Shen stated that many economists, both in and out of China, have proven that China's currency exchange rate is not the root cause of the trade imbalance between China and the United States, and the current exchange rate is within a reasonable level.

The yuan has appreciated nearly 10 percent against the U.S. dollar since 2010 after appreciating by 30 percent from 2005 to 2008.

While China's trade surplus with other countries has continued to decline drastically, the one with the U.S. has constantly risen.

Experts believe that the trade imbalance between China and the United States is not caused by the exchange rate issue. The main causes might be: 1) Defects in America's own economic structure; 2) America's limitations on high-tech exports to China. (Li Zhenyu)