The Vice minister of Commerce said forcing the renminbi to appreciate would backfire (pictured)

March 24, China's vice minister of commerce, Zhongshan, attended a breakfast meeting in the U.S. business community in Washington, D.C. Xinhua News agency reporter Zhang June, Xinhua, Washington, March 24 (reporter Lina Liu Hong) China's vice minister of Commerce Zhongshan 24th in the Chinese Embassy in the United States and foreign reporters met, said the impact of the financial crisis, both sides are facing tremendous economic growth and employment pressure.　　China and the United States should work together to tackle these problems, rather than looking for scapegoats for their own domestic problems, forcing the renminbi to appreciate will only backfire. Mr. Zhong said the biggest challenge facing Sino-US economic and trade relations is trade protectionism and the politicization of Sino-US economic and trade issues.　　Historical experience has proved that protectionism and beggar-thy-neighbour, harm to others, will only adversely affect the recovery of the world economy, the two sides should jointly oppose all forms of trade protectionism. There is a voice in the United States that blames the U.S. trade imbalance for the rise in unemployment, which is seen as an undervalued renminbi and a subsidy for Chinese exports. Mr. Zhong said these views were wrong.　　He said the renminbi exchange rate is not the root cause of the U.S. trade deficit with China, nor is the exchange rate a "key" to solving the U.S. employment problem. Mr. Zhong said the economic structure of China and the United States is highly complementary, and the two sides are complementary and cooperative in many industries, rather than competing relationships. Forcing the renminbi to appreciate does not solve America's trade deficit and employment problems. Many of China's exports to the US, which are no longer produced in the United States, are not directly competitive with the US, and are not the cause of US unemployment.　　The US has reduced imports of these products from China, only to expand imports from other countries, and it is not helping to increase employment in the United States. He said the renminbi's basic stability is not only good for China, but good for the United States and for the world economy as a whole. Figures show that a sharp appreciation of China's exchange rate would have a serious impact on the economies of developing and underdeveloped countries. China not only wants the renminbi to be relatively stable, it also wants the dollar to remain relatively stable.　　If the dollar falls sharply, it will bring disaster to the world economy that is recovering from the crisis, especially in countries with large holdings of US Treasuries. Mr. Zhong said appreciation of the renminbi could not solve the Sino-US trade imbalance. From July 2005 to July 2008, the renminbi appreciated by 21%, while China's trade surplus with the US rose sharply. On the contrary, the trade surplus between China and the United States decreased after the relative stability of the dollar in 2009. China's import and export trade fell by 13 in 2009. 9%.　　The data show that the renminbi is not the only solution to the trade balance. Sino-US bilateral economic and trade cooperation is large in scale, wide in scope and rapid in development, and some frictions and problems are unavoidable. As long as both sides adhere to the strategic height and long-term perspective and deal with the Sino-US economic and trade relations, through communication and consultation to properly deal with economic and trade frictions, we can seek common ground and promote bilateral economic and trade relations continue to develop.　China and the United States should work together to deepen bilateral economic and trade cooperation, actively seek and expand the interest points and promote a higher level of bilateral economic and trade relations.　In the past 30 years, China and the United States have often faced challenges, Mr. Zhong said. Recently, there have been some new challenges in Sino-US trade. Politicians in both China and America must have the wisdom and ability to solve the current problems.