Friday, December 31, 2010
Yuan's Manipulator?/Internationalization of Renminbi-IX
After China’s annual National People’s Congress conference, the Chinese premier Wen Jiabao opened the press conference by criticizing the United States. Wen defended that China would not the appreciation of Renminbi. Soon after the Chinese leader dismissed the American complains, about 130 American congressman submitted the letter to the president by asking to add China as a currency “manipulator.” As Nobel Prize winner Paul Krugman declares “trade war” even China dumps massive U.S. bonds in the market, the Capital Hill wants to target China as scapegoat. As Japan Times states, “the yuan is a job for China’s peer economies, not those that caused the turmoil.” Therefore, Wen Jiabao needs to reject Obama’s request. The fact of the matter is that today’s China is not stronger than Japan in the 1980s as the Japanese yen was appreciated. The Chinese leaders are learning lesson from Japan.