Latest News:  
Beijing   Cloudy    12 / 3   City Forecast

People's Daily Online>>China Business

Ministry: Don't blame yuan for US trade deficit

(People's Daily Online)

14:56, November 17, 2011

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)

We Recommend


Leave your comment1 comments

  1. Name

Todd at 2011-11-17108.32.204.*
Corporate America exported American jobs to China because of lower wages. It's all about profits. Stay out of Free Trade Agreements (FTA). Practice mercantilism!

Selections for you

  1. Shenzhou-8 spacecraft lands in Inner Mongolia

  2. In pictures: Shenzhou-8 landed on earth

  3. JF-17 fighters unveiled in int'l airshow

  4. 21 world's most mysterious landscapes

Most Popular


  1. US Asia-Pacific strategy brings steep price
  2. How climate change will affect China
  3. Philippines walking a very fine line
  4. Occupy movement must find global answers
  5. Gold prices likely to rise, not fall next year
  6. RMB appreciation will not ease US troubles
  7. Australia could be caught in Sino-US crossfire
  8. China helped EU in crisis enough
  9. Second-power status brings many risks
  10. China model can absorb best of the West

What's happening in China

Cheaper admission just the ticket for landmark venue

  1. China waves goodbye to veteran MD jet
  2. Student used 7 identities to blackmail policeman
  3. Death toll in school bus accident rises to 21
  4. HK Disneyland gets Toy Story Land
  5. Three Gorges water, soil facilities pass tests

PD Online Data

  1. Yangge in Shaanxi
  2. Gaoqiao in Northern China
  3. The drum dance in Ansai
  4. Shehuo in Baoji City
  5. The dragon dance