Chuck Bao
12/27/2009, 08:21 PM
I was just writing my daily stock market comment today and came across this piece and Obama's trip to China probably wasn't as useful as I had initially hoped. You know that the Chinese leader has to be worried about their economy and appreciating property prices.
[QUOTE][Chinese premier strikes defiant yuan tone
December 27, 2009: 8:38 AM ET
http://money.cnn.com/2009/12/27/news/international/china_yuan.reut/index.htm
BEIJING (Reuters) -- Chinese Premier Wen Jiabao on Sunday struck a defiant note about the country's controversial exchange rate policy, saying the government would not give into foreign demands to let the yuan rise.
Wen said the currency was facing growing pressure to appreciate, but insisted that China was committed to keeping it stable, having virtually pegged it to the dollar since the global financial crisis worsened in the middle of last year.
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"We will not yield to any pressure of any form forcing us to appreciate. As I have told my foreign friends, on one hand, you are asking for the yuan to appreciate, and on the other hand, you are taking all kinds of protectionist measures," he said.
"The true purpose (of these calls) is to contain China's development," he added in an interview with the official Xinhua news agency.
The yuan has fallen against the currencies of most of its trading partners this year because it has been fixed to a weakening dollar, while China's economy has bounced back strongly. U.S. senators have asked for an investigation into whether current yuan policy represents a form of subsidy that would justify tariffs on Chinese imports.
Wen also repeated an oft-made declaration that the stable yuan had contributed to the global economic recovery...(for more of the article click on the link
/QUOTE]
[QUOTE][Chinese premier strikes defiant yuan tone
December 27, 2009: 8:38 AM ET
http://money.cnn.com/2009/12/27/news/international/china_yuan.reut/index.htm
BEIJING (Reuters) -- Chinese Premier Wen Jiabao on Sunday struck a defiant note about the country's controversial exchange rate policy, saying the government would not give into foreign demands to let the yuan rise.
Wen said the currency was facing growing pressure to appreciate, but insisted that China was committed to keeping it stable, having virtually pegged it to the dollar since the global financial crisis worsened in the middle of last year.
Facebook Digg Twitter Buzz Up! Email Print
"We will not yield to any pressure of any form forcing us to appreciate. As I have told my foreign friends, on one hand, you are asking for the yuan to appreciate, and on the other hand, you are taking all kinds of protectionist measures," he said.
"The true purpose (of these calls) is to contain China's development," he added in an interview with the official Xinhua news agency.
The yuan has fallen against the currencies of most of its trading partners this year because it has been fixed to a weakening dollar, while China's economy has bounced back strongly. U.S. senators have asked for an investigation into whether current yuan policy represents a form of subsidy that would justify tariffs on Chinese imports.
Wen also repeated an oft-made declaration that the stable yuan had contributed to the global economic recovery...(for more of the article click on the link
/QUOTE]