China Reiterates The Three Principle Of RMB Exchange Rate Reform, Appreciation Or Postponing Of RMB.

A senior foreign exchange analyst said that Hu Jintao's statement was similar to that of the central bank in the implementation of the monetary policy report on exchange rate system reform. It only emphasized the direction of the exchange rate reform again, and should not be read by the market as the start of the reform.

It is probably the most concern of investors at present.

Yesterday (May 24th), when attending the opening ceremony of the second round of China US strategic and economic dialogue, President Hu Jintao said that China will continue to steadily push forward the reform of the RMB exchange rate formation mechanism in accordance with the principle of initiative, controllability and gradualism.

He did not elaborate on this, but his remarks reiterated China's consistent position on the issue of RMB exchange rate reform.

"Three principles" is the principle of exchange rate reform established in 2005 by decision makers. President Hu's position once again shows the direction of China's foreign exchange reform.

Professor Zhao Xijun of Renmin University of China made the above remarks in an interview with the daily economic news reporter.

Dong Xiang, an analyst at BOC International, told reporters that "the European debt crisis has made the market doubt that China's determination to push forward the reform of the exchange rate may be shaken. Hu Jintao's speech affirmed China's determination".

It is not the start of the reform.

In a report released yesterday (May 24th), Standard Chartered Bank pointed out that in order to ease the tension among trading partners, including the United States, China still needs to allow the renminbi to appreciate against the US dollar.

However, Zhang Xiaoqiang, deputy director of the NDRC, said that there were no Chinese or US ministers and leaders to discuss the RMB exchange rate issue yesterday morning at the thematic session of the economic dialogue with the theme of "promoting strong economic recovery and more sustained and balanced economic growth".

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When deciding the direction of foreign exchange reform, when to start the reform of foreign exchange market has become the focus of the market.

"Hu Jintao's statement is the same as the central bank's statement of exchange rate system reform in the implementation report of the monetary policy. It only emphasizes the direction of the reform, and should not be read by the market as the start of the reform.

A senior foreign exchange analyst made the above statement in an interview with the daily economic news reporter.

The analyst said that now is not the time window to push forward the reform.

Zhao Xijun told reporters more directly that the renminbi does not currently have the conditions for appreciation.

CICC forecast in May 24th's macroeconomic weekly that China will not let the renminbi appreciate against the US dollar in the short term.

The judgement is based on the following two reasons. On the one hand, from the perspective of recent financial market fluctuations, the Greek problem may lead to a larger European crisis, which will bring risks to China's economy, especially exports. On the other hand, the RMB has appreciated significantly against the US dollar in the past two months.

With the development of the crisis, the euro has reached its lowest level in the 4 years against the US dollar. The renminbi also appreciated with the US dollar against the euro. In May 24th, the RMB exchange rate reached a record 8.27:1 against the euro, and since the beginning of 2010, the RMB has continued to appreciate 15% against the euro.

Zhao Xijun told reporters that from an economic point of view, the general goal of the government is to stabilize market volatility and reduce economic uncertainty.

If foreign exchange reform is to be promoted at this time, it will undoubtedly add new uncertainties to the domestic economic recovery in the face of external uncertainties.

In fact, the development of the European debt crisis has been closely watched by the Chinese government. In the second round of the Sino US strategic and economic dialogue briefing held in May 24th, Zhang Xiaoqiang said: "when ministers discussed the European sovereign debt crisis, they inevitably talked about the corresponding impact of the people's currency on the euro exchange rate."

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When will the reform be restarted?

As for the possible time window for the exchange reform, CICC believes that when the euro returns to the long-term sustainable level against the US dollar, the possibility of RMB appreciation will increase significantly.

Its prediction of a significant depreciation of the euro against the US dollar is unlikely to continue and will continue to return to long-term sustainability in the future.

Standard Chartered Bank also pointed out in the report that a stable euro exchange rate will help China's exchange rate reform.

Standard Chartered Bank yesterday (May 24th) postponed RMB exchange rate implementation forecast from May to the third quarter.

Standard Chartered Bank expects USD / CNY to fall to 6.8200 at the end of the third quarter of this year, which was expected to be 6.7700, while it was expected to be 6.7000 at the end of the year or down to 6.8000.

Dr Chiang Shu, a capital operation center of Xingye Bank, told the daily economic news that the appreciation of the renminbi may be postponed to 7 and August. The Chinese government needs to consider the economic data of the two quarter of the developed economies to decide comprehensively its exchange rate policy.

CICC also expressed a similar view that the Chinese government would not be eager to change its exchange rate policy at this time, but would choose to continue to observe changes in the external environment and wait for a more opportune moment.

China wide network Beijing May 25th, according to the voice of China, "news crossword" 7:18 reported yesterday (24), the Sino US strategic and economic dialogue let the world focus again on Beijing.

Under the banner of strategy and economy, there are large and small meetings and discussions. Most of these closed doors have lifted the appetites of the media. The five related briefing sessions of Diaoyutai State Guest House have attracted a large number of Chinese and foreign journalists. Let's listen to the report of Liu Le, a reporter in front of CCTV.

China and the United States should establish partnerships to meet common challenges

The news center on the 2 floor of Diaoyutai State Guest House is busy on the 24 day.

Nearly a hundred Chinese and foreign journalists gathered here, waiting for every briefing.

Yesterday's five briefing sessions were two sessions of the strategic dialogue and the three one of the economic dialogue.

The two leaders of the strategic dialogue were Ma Zhaoxu, director of the Information Department of the Ministry of foreign affairs. He respectively introduced the main topics of the two strategic talks and the attitude of the Chinese side.

Ma Zhaoxu: we must conscientiously implement the important consensus of the two heads of state Mahayana and always strive to build a positive, cooperative and comprehensive Sino US relationship in twenty-first Century, and take concrete actions to steadily establish a partnership to deal with common challenges.

Ma Zhaoxu said that the three Sino US joint communiques and the Sino US joint statement are the basic principles that must be followed in the development of the new century (002280).

It is hoped that the US side will respect China's core interests and major concerns, especially with regard to sensitive issues such as Taiwan and Tibet.

Ma Zhaoxu: Dai Bingguo, the state councilor, used a Chinese ancient saying called "the turn of the state and the letter".

It is believed that with the joint efforts of both sides, China and the United States will surely establish a long-term, stable, mutual trust and sustainable development of new state relations.

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We will continue to discuss the recognition of China's market economy status.

The Sino US economic dialogue held three briefing sessions on specific economic issues in Sino US relations.

Chen Deming, Minister of Commerce, Zhou Xiaochuan, governor of the people's Bank of China, Zhang Xiaoqiang, deputy director of the development and Reform Commission, and Cao Jian Lin, Vice Minister of science and technology, gave the news to the media.

Journalists from both Chinese and foreign media also seized the opportunity to ask several heads of their concerns about some problems in the Sino US economy.

Reporter: if the United States relaxes its high-tech exports to China, what aspects will it impact on Sino US trade?

Chen Deming: this issue is a core and key issue in the Sino US trade balance.

Recently, the United States has assessed the current export control system. It is believed that the system was formed during the cold war, and it was difficult to adapt to the needs of twenty-first Century and demanded fundamental reforms. China welcomes it.

At today's meeting, Minister Gary Locke said that substantial reforms will take place in the near future.

I hope this statement is not just thunder or rain, but also hope that it is not a light rain, rather than a few items abolished. Instead, it will abolish discriminatory export control to China as a whole.

Another reporter asked: will the United States recognize China's market economy status in the near future?

Chen Deming said that the two sides elaborated their own views on the dialogue and did not fully agree.

But they jointly expressed their willingness to continue discussions on this issue.

Ma Zhaoxu, spokesman for strategic dialogue under the framework of the second round of China US strategic and economic dialogue, said last night that as a close neighbor of the Korean Peninsula, China is highly concerned about the "Tianan (quotes, information and Commentary)" incident and developments.

China hopes that all sides will be calm and restrained, properly handle relevant issues and avoid escalating tensions.

President Hu Jintao stressed yesterday that China will continue to follow the path of peaceful development, develop friendly cooperation with all countries on the basis of the five principles of peaceful coexistence, do not interfere in other countries' internal affairs, impose their will on others, and work together with other countries in the world to promote the establishment of a harmonious world of lasting peace and common prosperity.

The two round of the second round of Sino US strategic and economic dialogue opened in Beijing in May 24th. A series of global, strategic and long-term issues discussed by the two sides are of great significance not only to the two countries, but also to world peace, stability and prosperity, which are highly concerned by the international community.

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Focus 1: Sino US relations

Building a positive, cooperative and comprehensive relationship between China and the United States is the core goal of the strategic and economic dialogue between China and the United States.

Chinese President Hu Jintao attended the opening ceremony and delivered a speech yesterday. He put forward 7 proposals for developing long-term healthy and stable Sino US relations, and further pointed out the direction for the development of Sino US relations.

"The importance of us China relations is comparable to any bilateral relationship in the world in twenty-first Century."

"Facts have proved that the high degree of complementarity between China and the US determines that the two countries are not rivals for zero sum games, but mutually beneficial and win-win partners."

"To create a new history of great power relations among countries with mutual respect, harmony and win-win cooperation in different social systems, cultural traditions and stages of development."

"Rain and shine."

In the strategic dialogue on the same day, the two sides exchanged views on how to properly handle some major and sensitive issues. Chairman Hu Jintao, special representative of the State Council Dai Bingguo said: "we can say that our dialogue has already made a good start."

President Obama's special representative, Secretary of state Clinton, said that from the positive attitude shown by both sides in this dialogue, we can see that both the United States and China want to strengthen cooperation and are looking at bilateral relations from a comprehensive perspective.

Focus 2: promoting economic recovery

Since the outbreak of the international financial crisis, China and the United States have worked together to tide over the difficulties and coordinate relevant macroeconomic policies, which has made important contributions to the recovery of the world economy.

At present, the European sovereign debt crisis has a direct impact on the implementation of the macroeconomic policies of the two largest developed economies and developing economies in the world.

In the strategic and economic dialogue, the two sides focused on how to continue to persist in stimulating economic policies and get rid of the predicament of "low employment recovery" as soon as possible, while strengthening fiscal consolidation, maintaining fiscal sustainability and preventing the spread of sovereign debt crisis.

In the speech, the representatives of China and the United States pointed out that at present, the foundation of the world economic recovery is still not solid, and there are uncertain factors such as the impact of the European sovereign debt crisis. The timing of the exit strategy must be cautious and the implementation steps must be solid and steady.

Zhou Xiaochuan, governor of the people's Bank of China, said that everyone spoke in support of actions already taken by Europe that the action to promote global economic recovery would remain strong in general.

10 months ago, the contribution of increasing US savings and consumption to China's GDP growth was once written into the first round of strategic and economic dialogue as a consensus between the two sides to pform the way of economic development.

Today, accelerating the pformation of the mode of economic development is still an urgent and arduous task faced by China and the United States.

President Hu Jintao, especially the vice premier of the State Council, pointed out that the deeper problem is that we must change the lifestyle that people are accustomed to and are pursuing.

Geithner, the special representative of the US President Obama, praised China's economic stimulus plan, saying that China had effectively expanded domestic demand while maintaining economic growth and realized the pformation of growth mode.

Geithner said that the United States and China demonstrated the ability to work closely together in coping with the biggest challenges of the world economy today, laying the foundation for achieving a strong, sustainable and balanced growth of the world economy.

Focus 3: anti protectionism

In the critical period of world economic recovery, the rise of trade protectionism is bound to have a negative impact on the economies of other countries.

In the dialogue, China once again clearly adheres to the win-win strategy of opening up and expands the position of market access in accordance with international economic and trade rules.

Wang Qishan pointed out that China is pleased to see the US's motion to relax export restrictions and welcome foreign enterprises to invest in the US. In this dialogue, we hope to have a detailed understanding of the US's timetable and roadmap for the gradual elimination of obstacles to high technology exports to China, the equal treatment of Chinese enterprises to invest in the United States, and recognition of the economic status of China's market.

In the dialogue, Chen Deming, Secretary of Commerce, defined the discriminatory export control to China as a core and key issue of Sino US trade balance.

He said: "I hope this statement is not just thunder or rain, but also hope that it is not a light rain, rather than a few items, but on the abolition of discriminatory single export control to China as a whole.

If the US government can really do so, the enterprises of China and the United States will benefit a lot. "

According to statistics, China's current account surplus decreased by 34% last year, down 78.6% from 1 to April this year.

"We are in a very small surplus."

Chen Deming said.

The two sides discussed in depth the issue of Sino US trade balance, improving bilateral investment environment, properly handling economic and trade frictions, recognizing China's market economy status, and the Doha Round negotiations.

Focus 4: promoting financial reform

Starting from the first round of the Sino US strategic and economic dialogue, promoting financial reform is one of the issues of concern to both sides and the international community. The current round of dialogue is no exception.

In his speech, Hu Jintao clearly pointed out that China will continue to steadily push forward the reform of the RMB exchange rate formation mechanism in accordance with the principles of initiative, controllability and gradualism.

Zhou Xiaochuan said that although China is a very export-oriented economy, generally speaking, a large country with a population of 1 billion 300 million, most of which need to consider the domestic factors, will also have an impact on the decision of monetary policy, but this effect is often smaller than domestic factors.

The participants in the United States introduced their recent financial reform bill, which was being studied and passed, and the US side tried to balance the prudent operation of the financial industry and encourage financial innovation.

Geithner said: "we welcome Chinese leaders' recognition of the importance of the reform of the RMB exchange rate regime."

Although China and the United States did not expect to resolve all problems and contradictions through a round of dialogue, they all agreed that this mechanism should be a bridge to promote communication, understanding and trust.

Ma Zhaoxu, a spokesman for the Chinese side, said that the exchange will help us to better understand the positions and policies of China and the United States on some issues and will play an important role in Promoting Sino US cooperation in related issues.

Wang Qishan said: "we should show that dialogue is different from negotiation, and concrete results should not be taken as evaluation criteria."

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Sino US relations

There is no doubt that building a new Sino US partnership is an unprecedented pioneering task. We can not imagine that it will be plain sailing and no difficulty on the way forward. However, the practice has proved that this road is necessary and feasible.

Chinese State Councilor Dai Bingguo

There is a Chinese saying that "all roads lead to the same goal."

The United States and China have different histories, but they share common goals and responsibilities, and this is the significance of this dialogue.

Secretary of state Hilllary Clinton

Our approach reflects the connotations of Chinese Idioms "sharing the same storm". If we work together in times of crisis, our people will benefit and the whole world will be better.

US Treasury Secretary Timothy Geithner

Trade and investment

China is pleased to see the US move to relax export restrictions and welcome foreign companies to invest in the US. In this dialogue, we hope to have a detailed understanding of the US's timetable and roadmap for the gradual elimination of obstacles to China's high-tech exports, the equal treatment of Chinese enterprises to invest in the United States, and the recognition of China's market economy status.

Wang Qishan, vice premier of the State Council of China

I hope this statement is not just thunder and rain, but also hope that it is not a light rain, rather than a few items abolished. Instead, it will abolish discriminatory export control to China as a whole.

If the US government can really do this, the companies between China and the United States will benefit a lot.

Chen Deming, Minister of Commerce of China

Although every trade dispute between the US and China will be derided as evidence of a trade war, it is also necessary to bear in mind that this difference is only a tiny part of the trade between the two countries.

- Luo Jiahui, US Secretary of Commerce

RMB rate

Although China is a very export-oriented economy, generally speaking, a large country with a population of 1 billion 300 million is the most important factor to consider.

International factors will also have an impact on monetary policy, but this effect is often less than domestic factors.

Zhou Xiaochuan, governor of the people's Bank of China

We welcome China's leaders' recognition of the importance of the reform of the RMB exchange rate regime.

US Treasury Secretary Timothy Geithner

clean energy

Sino US new energy R & D cooperation is mainly focused on three areas: new energy vehicles, building energy efficiency technologies and clean coal.

Cao Jianlin, Vice Minister of science and technology of China

Independent innovation

China's policy of persisting in independent innovation and encouraging foreign enterprises to invest in China and joint research and development work in China will not change.

Cao Jianlin, Vice Minister of science and technology of China

intellectual property right

Intellectual property protection is a worldwide problem. Now, in many new fields such as Internet, there are many challenges in technology management.

At the same time, China is still a developing country with large territory and large population, and there are five levels of government management. Therefore, in the process of law enforcement, there may be some problems in local and local industries that need to be strengthened and improved.

Chen Deming, Minister of Commerce of China

US fiscal deficit

As the economic situation improves, the United States is working to reduce its deficit level to an affordable level.

President Obama has drawn up a detailed and comprehensive plan to cut over half of the deficit in GDP over the next few years.

US Treasury Secretary Timothy Geithner