How to deal with the devaluation of RMB

BEIJING, October 25 (Xinhua Dong) "The renminbi is facing an extremely contradictory state: international, oppression of further appreciation of the renminbi, the best is sweeping; domestic, agricultural products, raw materials prices, CPI has been floating red, inflation expectations more and more serious." How do we deal with this inward-rising situation? "Chinese Academy of Social Sciences Wans Yang San Ming said that China's rapid economic growth, the appreciation of the renminbi is inevitable, but must not suddenly a substantial appreciation, make it overnight." Yang San Ming The above remarks at a symposium held today.　　Yesterday, it was reported that the leaders of the group of 20 (G20) would seek to agree on a specific approach to reducing global trade imbalances next month in an effort to avert a potential "currency war" again. Yang San Ming that yuan prices are not free to change.　　On the exchange rate issue, at least 4 factors must be considered: Labor productivity, domestic price level, trade structure and international economic relations. As a commodity, the price of a currency is determined by the amount of domestic labor value. At present, China and the United States are not comparable in labor productivity. America produces more than three days a day.　　Moreover, China's domestic prices are low in all respects, labor, energy, environment and resources are lower than in the United States, the American minimum wage of 8 U.S. dollars per hour, the Chinese less than two U.S. dollars, at this price level, it is unrealistic to want to let the yuan price suddenly go up. Yang San Ming stressed that with the current economic structure, China's comparative advantage in labor-intensive products, the U.S. comparative advantage in High-tech products and military products. According to traditional Western economic theory, Advantage export, inferior import, trade balance. However, the U.S. imports of China's labor-intensive products, but the restrictions on High-tech products to China, trade is of course unbalanced. "Nor is the United States exporting bonds and dollars. If you look at it in its entirety, trade is balanced. However, the United States must take the physical trade as the standard, of course, there is no solution. "In addition, there are many factors affecting the exchange rate, not that the trade deficit is wrong." International economic relations include the balance of payments, capital markets and even tourism. Current and capital projects account for only one-fifth of the total, and one-fifth say five-fifths.