China Manipulates RMB Exchange Rate To Help Exporters Be Blamed

After President Obama accused China of supporting its own businesses by manipulating the RMB exchange rate, the Chinese commerce minister said today whether he would "help the struggling manufacturers and exporters by devaluing the renminbi". He did not believe that the devaluation or appreciation of the renminbi would be good for importers or exporters.

On the 22 day, President Obama attended the meeting of the governors' Association at the White House. He said, "in the past, China had been manipulating exchange rates. Now frankly, their intervention is to let the renminbi appreciate rather than depreciate.

Because many people are beginning to feel uneasy about China's economy, but we tell them that you (China) must have an orderly market based monetary system instead of making Chinese companies profit from American companies.

Obama believes that China is now in the process of trying to pform the economic model, and it is impossible to maintain an export led growth mode forever. But it takes some time. China wants to solve the short-term problems by dumping goods subsidized by the state into the US market.

Obama pointed out that the renminbi

The problem is similar to dumping, which makes Chinese enterprises benefit from competition with American companies.

The US side clearly indicated to China that dumping to the US market could not solve the long-term problems, and the US would take necessary measures to regulate it.

At present, the United States has some new means, including a trade promotion bill passed by the house and Senate this week.

Today, Minister of Commerce

At the press conference, when asked by Bloomberg reporters, "do we need to further devalue the renminbi to help the struggling manufacturers and exporters", they said that in today's economic globalization, leading multinationals and leading enterprises in the industry are setting up global production factors, and do not believe that the depreciation or appreciation of the RMB is beneficial to importers or exporters.

Gao Hucheng said that under the background of deep economic integration of various countries, currency

And if the appreciation does not exceed 10%, the impact on trade will be negligible.

Therefore, we do not think that some fluctuations in the RMB quotation during the recent period will have a great impact on trade.

Gao Hucheng also cited an example: Recently, a large garment production enterprise in China combined some upstream and downstream enterprises, set up a garment industrial park in a South Asian country, invested about 13000000000 yuan RMB, and used two to three years to form an annual export capacity of 5 billion dollars of clothing products, reaching 20-22 people.

This enterprise is to allocate resources all over the world.

China's labor cost is no longer competitive for the traditional clothing industry. However, China's equipment, Chinese technology, Chinese funds, Chinese management and China's raw materials and accessories are its competitive advantages.