Chinese officials are closing the ranks when it comes to the nation’s yuan exchange rate policy — the currency will only be adjusted when China is ready and when it is in their interest.
Moreover, the yuan isn’t to blame for America’s economic problems according to commerce spokesman Yao Jian.
The trade deficit is a natural outcome of the globalization process:
“If the exchange rate issue is politicized, then in coping with the global financial crisis this will be of no help in coordination between the parties involved,” Chinese Commerce Ministry spokesman Yao Jian told a regular news conference.
“The trade surplus is not caused by the renminbi exchange rate. The trade surplus is an outcome and phenomenon of globalization. It will exist for a time,” he said.
Should China thus be attacking Japan and South Korea for the trade deficits it runs with those nations?
Yao asked rhetorically whether China, which has a trade deficit with Japan, South Korea and some developing countries, should copy the United States and pass a law to deal with those countries.
“So we hope that in surmounting the crisis and reviving its economy, the United States should be a promoter of free trade, not an obstacle to it,” he said.
Either way, this brewing trade war is not in any nation’s long-term interest.