US Deputy secretary of state visits China to trigger speculation on renminbi exchange rate

United States Deputy Secretary of State James Steinberg visited China from March 2 to 4th to exchange views with China on issues related to China-US relations. While the specifics of the talks are not known, experts predict that a focus on the economy could be the renminbi's exchange rate. In addition, China's holding of U.S. Treasury bonds and Sino-US trade relations may also enter the talks.　　While the US may again demand a revaluation of the renminbi against the dollar, Chinese experts say the renminbi remains stable under such strong pressure. The U.S. State Department 1st announced that the United States Deputy Secretary of State James Steinberg, White House National Security Council, senior Asian affairs director Bader left Washington that day to visit China. Chinese Foreign Ministry spokesman Qin Gang February 28 also confirmed this. Qin said that the U.S. side recently expressed the hope that the U.S. Deputy Secretary of State James Steinberg, White House National Security Association, senior Asian affairs director Bader to visit China from March 2 to 4th to exchange views with China on issues related to China-US relations.　　The Chinese side agreed to the US request. "Steinberglay China is sure to focus on the exchange rate issue. Because by April, the Treasury will issue a report on whether to include China as a currency manipulator, so let's start with China and urge the renminbi to appreciate. This is related to U.S. President Barack Obama's plan to double U.S. exports and focus on Asian markets.　　"Uibe, deputy director of China's Open Economic Research Institute Weiwen this to the economic reference newspaper reporter speculated. He said it would be unacceptable if the US demanded a sharp appreciation of the renminbi against the dollar. On the one hand, a stable renminbi exchange rate for the Chinese economy to maintain a steady and rapid growth is significant, on the other hand, the appreciation of the renminbi is not conducive to the alleviation of U.S. economic problems. The United States did reduce the global trade deficit by more than 300 billion trillion dollars last year, but it was divided into two parts: The decrease in the more than 200 billion dollar deficit came from the fall in international crude prices last year. The rise and fall of international oil prices is not a matter of supply and demand, but the issue of hot money speculation, and the main hot money from the United States, which has nothing to do with China. The remaining deficit reduction is the economic structure of the United States. As the manufacturing industry in the United States is reduced, it cannot be imported. The US had also asked for a revaluation of the Japanese yen and Deutsche Mark, which did not solve the deficit problem for both countries. The United States now has a trade deficit with more than 200 countries in the world, and it cannot demand a full appreciation of their currencies. And last year China's exports to the US fell 1 2. 5, imports have only fallen by 4 8%, not to mention the renminbi is undervalued.　　The US requires the renminbi to appreciate mainly because of pressure from domestic political groups, but none of the Americans who advocate a stronger renminbi can say exactly how much the renminbi is undervalued. Tan Yaling, executive director of the China Institute of International Economic Relations, also held the same view, saying that his visit to China was most likely to be about currency issues. Her view on the issue is that the United StatesAsking the renminbi to appreciate against the dollar is an unacceptable requirement for China to determine its own currency prices in the interests of others, while the US adjusts the dollar to its own needs. From China's point of view, the US experience should be used to reform the exchange rate regime, rather than simply changing prices as the US demands. She said that now China's foreign exchange reserves, the U.S. dollar accounted for more than 75%, so formed a greater appreciation of the renminbi against the dollar pressure.　　Therefore, to reform, we must continue to adhere to the reference basket of currency pricing, in addition to the United States dollar, such as the yen, the euro, sterling and other world's major currencies. Zhang Yuqing, representative of China's expert group on the World Trade Organization, said that the issue of China's reduction of U.S. government debt and Sino-US economic and trade relations could also be mentioned in his visit to China. He said that there are a lot of links between China and the U.S. economy, and two aspects are particularly important. First, how China will treat its treasuries.　　The US has been very concerned about China's large holdings of US Treasuries, which have had a huge impact on the US economy, as well as the impact on China and the international market as a whole. The second is the Sino-US trade issue. At present, China's economy has emerged from the trough of the international financial crisis, the recovery of the U.S. economy will take some time, so it is necessary for both sides to reach a consensus on some of the economic links, which mainly refers to bilateral trade. Since this is not a one or two-time meeting that can be made clear, Steinberg's visit is the first to explore and blow the air to lay the groundwork for the more advanced talks later.　　At present, the Sino-US trade dispute has two aspects: first, the United States has frequently used trade relief measures to suppress China's exports, and its relative to China's U.S. poultry and car anti-dumping investigation, which has a greater impact on both economies; second, China requires the United States to further liberalize exports of High-tech products to China. Zhang Yuqing said that in Sino-US trade issues, we should see that the Sino-US market is now irreplaceable to each other, so the Sino-US economic and trade exchanges, no matter what twists and turns, will have to move forward, trade scale will only become more and more big. Therefore, as senior government officials, we should try our best to safeguard the development of bilateral trade instead of defeating each other. If there are dumping concerns about the product, you can appeal to WT O, the result will be fair. Especially in the current difficult economic period, both sides should maintain a peaceful mentality.