Economy

China rejects US RMB exchange rate accusation

By Zhang Jiawei (chinadaily.com.cn)
Updated: 2010-09-15 17:12

The accusation that China's RMB exchange rate is inappropriately determined because of a trade surplus to the US is unreasonable and lacks economic support, said Yao Jian, spokesman with the Ministry of Commerce, on Wednesday.

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Yao, cited by Xinhua News Agency, said China has a trade surplus to the US but at the same time the country also has a huge trade deficit to countries like Australia, Japan and South Korea.

China doesn't want to see some politicians use the accusation of its trade and currency policy for winning an election, Yao said.

He added some US industries and congressmen repeatedly boast what they believe to be reasonable prices for China's RMB based on the trading date between China and the US. But China's trade surplus to the US can reflect only one part of the two countries' economic relationship, Yao said.

The US export to China has also grown rapidly in recent years with an increase of 36.2 percent year-on-year in the first seven months, 15 percentage points higher than its import from China.