In a lengthy interview with Xinhua, Chinese Premier Wen Jiabao made it pretty clear to the Chinese press that he wouldn’t yield to international pressure for a yuan revaluation.
China’s doing fine as is, and is actually helping pull the world economy out of its slump. Thus China will simply adjust the yuan when its ready.
FT: “We will not yield to any pressure of any form forcing us to appreciate. As I have told my foreign friends, on one hand, you are asking for the renminbi to appreciate, and on the other hand, you are taking all kinds of protectionist measures,” he said.
By keeping the Chinese renminbi stable against the US dollar, China was contributing to the recovery in the global economy, he said. “The purpose [of these calls for appreciation] is to hold back China’s development,” he added.
Xinhua: “A stable Chinese currency is good for the international community,” Wen told Xinhua News Agency in an exclusive interview.
Keep in mind that Mr. Jiabao will probably be talking a little tougher against the international community when directly addressing the local press, just like any U.S. president would do. Read more about the Xinhua interview here.
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