a new excuse for more protectionist measures.The Treasury move reeks of arbitrariness and unilater
上海千花坊alism, and will disrupt international trade rules and order as well as dampened investors’ confidence, experts said.
“By labeling China a currency manipulator, the US is in fact continuing its maximum-
pressure approach in trade talks,” said Liao Qun, chief economist of the China CITIC Bank International.上海千花坊女神会所
China and the US have been locked up in drawn-out trade disputes since last year.
On Monday, Chinese companies have halted purchases of US farm prod
上海千花坊uce after the US decided to impose additional 10-percent tariffs on $300 billion worth of
Chinese imports, as the US move seriously violated the consensus reached by the two heads of state in Osaka.
NO INTENTION TO DEVALUATE CURRENCY
上海千花坊女神会所China has long been committed to keeping the yuan’s exchang
e rate basically stable at a reasonable and balanced level, the central bank said.
The Chinese currency is the strongest among the G20 and is one of the currencies that has seen substantial appreciation.
From the beginning of 2005 to June this year, the currency’s nominal e上海千花坊
xchange rate appreciated 38 percent and real exchange rate strengthened 47 percent.
Last month, the IMF found in its latest annual assessment that the renminbi exchange rate was broadly in line with fundamentals.上海千花坊女神会所
From the macro perspective, the yuan’s exchange rate is buoyed by the coun
try’s sound fundamentals, strong economic resilience, stable fiscal position, c上海千花坊
ontrollable financial risks, balanced cross-border capital movement and sufficient foreign exchange reserves.
China has no intention to gain trade advantages by devaluing its currency, as the yuan’
上海千花坊女神会所s depreciation cannot necessarily lift exports, said Song Xiangyan, an analyst with the PBOC.
A large devaluation probably leads to panic capital outflows and competitive currency devaluation of China’s trading par
tners, which will undermine the country’s financial stability and hurt imports, Song added.
China will be committed to the promises on exchange rates made at all G20 summit上海千花坊女神会所
s and abide by a market-determined exchange rate system, the PBOC governor Yi Gang said Monday.
Refusing competitive devaluation, the country will not resort to exchange r
ates in handling external uncertainties such as trade disputes, Yi said.