bobbyw24
03-14-2010, 09:13 AM
By John Pomfret
Washington Post Staff Writer
Sunday, March 14, 2010; 3:05 AM
BEIJING - China's premier Wen Jiabao on Sunday lectured the United States, criticizing it for pressing China to let its currency rise against the dollar to boost U.S. exports, advising it to work harder to improve its financial system and directing it to change its foreign policy to improve relations with China.
Wen's comments -- during a 2 hour and 15 minute press conference at the end of China's annual session of its non-elected legislature -- seemed to indicate that China would generally pursue a relatively tough line in its relations with the United States this year. The comments underscored China's increasing self-confidence on the international scene following its success at coping with the global financial crisis.
But Wen also continued to express caution about the course of domestic events, expressing concern about "the unsteady, uncoordinated and unstable development of the Chinese economy." China grew at 8.7 percent last year, the fastest of any major economy in the world but it did so on the back of a massive stimulus package. Wen said China's economy faces many challenges including the possibility of a "double dip" recession if world growth doesn't pick up and, on the other side, runaway inflation if it does.
Wen's statements on the currency issue appeared to close off the possibility that China would allow its currency, the yuan, to appreciate against the dollar anytime soon. On Thursday, President Obama, in rolling out a plan to increase American exports, called on China to adopt "a more market-oriented exchange rate [that] would make an essential contribution to that global rebalancing effort."
Wen countered that he didn't think the yuan was undervalued and that the U.S. method -- of seeking to enlarge exports through tweaking currency exchange rates -- was protectionist.
"I understand that some countries want to increase their exports but I don't understand the practice of depreciating their currency and forcing others to appreciate theirs in order to accomplish this," Wen said in a clear nod to the United States. "I think this is a type of trade protectionism."
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/14/AR2010031400368.html?hpid=topnews
Washington Post Staff Writer
Sunday, March 14, 2010; 3:05 AM
BEIJING - China's premier Wen Jiabao on Sunday lectured the United States, criticizing it for pressing China to let its currency rise against the dollar to boost U.S. exports, advising it to work harder to improve its financial system and directing it to change its foreign policy to improve relations with China.
Wen's comments -- during a 2 hour and 15 minute press conference at the end of China's annual session of its non-elected legislature -- seemed to indicate that China would generally pursue a relatively tough line in its relations with the United States this year. The comments underscored China's increasing self-confidence on the international scene following its success at coping with the global financial crisis.
But Wen also continued to express caution about the course of domestic events, expressing concern about "the unsteady, uncoordinated and unstable development of the Chinese economy." China grew at 8.7 percent last year, the fastest of any major economy in the world but it did so on the back of a massive stimulus package. Wen said China's economy faces many challenges including the possibility of a "double dip" recession if world growth doesn't pick up and, on the other side, runaway inflation if it does.
Wen's statements on the currency issue appeared to close off the possibility that China would allow its currency, the yuan, to appreciate against the dollar anytime soon. On Thursday, President Obama, in rolling out a plan to increase American exports, called on China to adopt "a more market-oriented exchange rate [that] would make an essential contribution to that global rebalancing effort."
Wen countered that he didn't think the yuan was undervalued and that the U.S. method -- of seeking to enlarge exports through tweaking currency exchange rates -- was protectionist.
"I understand that some countries want to increase their exports but I don't understand the practice of depreciating their currency and forcing others to appreciate theirs in order to accomplish this," Wen said in a clear nod to the United States. "I think this is a type of trade protectionism."
http://www.washingtonpost.com/wp-dyn/content/article/2010/03/14/AR2010031400368.html?hpid=topnews