BEIJING: Raise the value of the yuan disasterBeijing has repeatedly pledged to maintain the yuan's exchange rate stable (Reuters - Archive)
Chinese regulator said Thursday that the quasi-governmental acquiescence to Western pressure to lift the value of the yuan would cause a disaster for China's exports, which came early last year replace Germany as the largest exporter in the world.
The warning came days after Beijing to invite the United States and other Western nations not to politicize the issue of the yuan exchange rate, and its commitment to keep it stable to help Chinese exporters.
Said Zhang Wei, vice chairman of China Council for the promotion of world trade in an economic conference in Beijing that the Council taught with a thousand sources in 12 industrial sectors, whether they can afford a stronger exchange rate of the yuan.
Risk on exportsHe referred in this context that the profit margins of segments operating capacity as high as clothes and furniture does not exceed 3%, and therefore affected by the revaluation of the yuan, which economists say that the current value of less than 25% of its real value.
"China denies Western statements that the current value of the yuan low for much of its real value. Experts say that the supposed decline of 25%"Wen stressed that the companies operating in these sectors could be in danger of vanishing in the event was immediate revaluation of the yuan. He said the consequences would be disastrous in this case for these companies.
Among the exports by the Chinese official said it could be damaged by raising the value of the yuan communication equipment and mechanical products.
And exports are one of the main engines of China's economy, which emphasizes that Chinese leaders will grow this year by not less than 10%.
For his part, said a Chinese source briefed on the state tests to assess the implications of the possible adjustment of the value of Chinese currency that succumbing to outside pressure on the yuan is the last thing China can do even if it is the right choice.
The Chinese Prime Minister Wen Jiabao has denied Sunday that the yuan, down from its true value - as the United States and other Western countries - and criticized the administration of President Barack Obama to "politicize" the issue.
In the Chinese position that supports the arguments that the current exchange rate of the yuan is not the reason for the trade imbalance in favor of China, The United Nations Conference on Trade and Development (UNCTAD), the first Tuesday in Geneva, said China's currency exposure to the vagaries of the market poses global risks.
Chinese regulator said Thursday that the quasi-governmental acquiescence to Western pressure to lift the value of the yuan would cause a disaster for China's exports, which came early last year replace Germany as the largest exporter in the world.
The warning came days after Beijing to invite the United States and other Western nations not to politicize the issue of the yuan exchange rate, and its commitment to keep it stable to help Chinese exporters.
Said Zhang Wei, vice chairman of China Council for the promotion of world trade in an economic conference in Beijing that the Council taught with a thousand sources in 12 industrial sectors, whether they can afford a stronger exchange rate of the yuan.
Risk on exportsHe referred in this context that the profit margins of segments operating capacity as high as clothes and furniture does not exceed 3%, and therefore affected by the revaluation of the yuan, which economists say that the current value of less than 25% of its real value.
"China denies Western statements that the current value of the yuan low for much of its real value. Experts say that the supposed decline of 25%"Wen stressed that the companies operating in these sectors could be in danger of vanishing in the event was immediate revaluation of the yuan. He said the consequences would be disastrous in this case for these companies.
Among the exports by the Chinese official said it could be damaged by raising the value of the yuan communication equipment and mechanical products.
And exports are one of the main engines of China's economy, which emphasizes that Chinese leaders will grow this year by not less than 10%.
For his part, said a Chinese source briefed on the state tests to assess the implications of the possible adjustment of the value of Chinese currency that succumbing to outside pressure on the yuan is the last thing China can do even if it is the right choice.
The Chinese Prime Minister Wen Jiabao has denied Sunday that the yuan, down from its true value - as the United States and other Western countries - and criticized the administration of President Barack Obama to "politicize" the issue.
In the Chinese position that supports the arguments that the current exchange rate of the yuan is not the reason for the trade imbalance in favor of China, The United Nations Conference on Trade and Development (UNCTAD), the first Tuesday in Geneva, said China's currency exposure to the vagaries of the market poses global risks.
