China says stronger Yuan will not solve trade imbalance

Written by: Pti
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Hong Kong, Jan 14 (Yonhap) China restated its positionand said the appreciation of its currency will not solve itstrade imbalance with the United States, an official said here.

"The yuan appreciation cannot solve the trade imbalance,"Hong Lei, spokesman for the Chinese foreign ministry, saidyesterday.

"China will unswervingly push forward reform of the yuanexchange rate system, but it will be based on a gradual,independent and controllable principle." His comments came oneday after US Treasury Secretary Timothy Geithner urged Chinato speed up in raising the value of the yuan.

"We are willing to make joint efforts with the UnitedStates in taking comprehensive measures to gradually resolvethe trade imbalance," Hong said.

The US has been arguing that China artificially lowersthe value of the yuan, giving its exporters an unfairadvantage in overseas markets. China has continuously resistedsuch arguments.

Meanwhile, the Chinese currency continued its upward moveearlier on Wednesday to its highest level against the USdollar, as Beijing is seen as allowing its currency toappreciate in a bid to curb inflationary pressure.

The appreciation was also seen as the Chinesegovernment''s response to US.

President Barack Obama, who has repeatedly called onChina to allow the Yuan to find a fair market value. ChinesePresident Hu Jintao is scheduled to make a visit to Washingtonnext Wednesday. (Yonhap)

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