China says stronger yuan will not solve trade imbalance

By Kim Young-gyo
HONG KONG, Jan. 13 (Yonhap) -- China on Thursday restated its position and said
the appreciation of its currency will not solve its trade imbalance with the
United States.
"The yuan appreciation cannot solve the trade imbalance," Hong Lei, spokesman for
the Chinese foreign ministry, said at a regular press briefing.
"China will unswervingly push forward reform of the yuan exchange rate system,
but it will be based on a gradual, independent and controllable principle."
His comments came one day after U.S. Treasury Secretary Timothy Geithner urged
China to speed up in raising the value of the yuan.
"We are willing to make joint efforts with the United States in taking
comprehensive measures to gradually resolve the trade imbalance," Hong said.
The U.S. has been arguing that China artificially lowers the value of the yuan,
giving its exporters an unfair advantage in overseas markets. China has
continuously resisted such arguments.
Meanwhile, the Chinese currency continued its upward move earlier on Wednesday to
its highest level against the U.S. dollar, as Beijing is seen as allowing its
currency to appreciate in a bid to curb inflationary pressure.
The appreciation was also seen as the Chinese government's response to U.S.
President Barack Obama, who has repeatedly called on China to allow the yuan to
find a fair market value. Chinese President Hu Jintao is scheduled to make a
visit to Washington next Wednesday.
ygkim@yna.co.kr
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