Chinese commerce minister Chen Daming criticized new US legislation allowing duties on subsidized goods from China and Vietnam for violating international rules and said Beijing will not adjust the yuan’s value to help the US solve its trade deficit problem, Reuters reported. Chen noted that China’s trade surplus was reduced to 2.1% of economic output in 2011, while the US trade deficit remained at 4.8% of its GDP. China’s overall trade surplus was only US$150 billion, but its trade surplus with the US was US$200 billion, Chen noted. “Every man, free from prejudice and armed with common-sense economics, can come to the right conclusion,” he said. Chen also claimed that US criticism of China’s currency policies are unfounded. The yuan exchange rate is near its fair value, he said, and the government has no intention of allowing it to appreciate quickly.
Categories