politics

China calls on Japan, U.S., EU to avoid devaluation

28 Comments

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

©2022 GPlusMedia Inc.

28 Comments
Login to comment

Very interesting points by the commerce minister of China. I wonder what would happened to the global money supply, prices of good, and trade if China devalued the RmB in response the devaluation of the yen, dollar, euro, etc.

2 ( +3 / -1 )

China controls its own currency, does not allow the Yuan to float like other currencies but wants the USA?? Japan?? And the EU countries to NOT devaluation their own currencies?? Very funny!!

14 ( +16 / -2 )

Ha! Tell China to go stuff it! How long have they pegged their currency to the US dollar, just to make sure that it's value is low, so as to make their goods as cheap as possible. Now with the slightest hint of competition from other cheaper SE Asian countries and the rise in their currencies, they cry unfair!

10 ( +10 / -0 )

China’s commerce minister appealed Friday to other major governments to avoid suppressing the value of their currencies to boost exports, warning that could hurt global growth.

LOL,China is not in position to tell others what to do. The problem will be solved if China joins us; the world currency floating system to play fair and free trade. Let the market decide the value of Yuan.I still remember how Tim Geithner (former US Secretary of Finance) was laughed at University of Beijing when he was requesting a cooperation from PRC to do so. We sent Secretary of State Clinton for the same issue. Obama went to China for the same issue. China rejected all these requests.

We can export "inflation" to China while China export "unemployment" to the rest of world. US unemployment data released yesterday suggests we are on the way to recovery while Chinese real estate bubble is bursting everywhere in China that may leads to economic chaos in Chinese banking industry. We told you so, China and you did not listen. Now China is coming up with this? Gimme a break.

8 ( +8 / -0 )

How long have they pegged their currency to the US dollar

They have been in economic war. "PEGGED Yuan to the US dollar" took many manufacturing jobs disappeared from US and Japan.

8 ( +8 / -0 )

MarkXMar. 09, 2013 - 07:49AM JST Ha! Tell China to go stuff it! How long have they pegged their currency to the US dollar, just to make sure that it's value is low, so as to make their goods as cheap as possible.

It used to be that way 5-10 years ago. Not anymore. If your selective, they manufacturer quality stuff as good as anybody. Close to half of the U.S. trade deficient with China is the direct result of U.S. corporations exporting back to U.S. I doubt any U.S. corporation doing extensive business in China wants drastic change in making Chinese Yuan stronger. Chinese Yuan was pegged at 8.28 per dollar until about around 5 years ago. It is currently around 6.20's level. If the Yuan is adjusted another 20 percent, and some of the U.S. and Japanese corporations operating inside China have started planning to move their manufacturing to Vietnam or other locations that has lower labor cost. Regardless, the problem in China for foreign manufacturer is the accelation of the labor cost that are rising 10 percent a year, and it is becoming increasing difficult for many companies to survive in China.

-2 ( +3 / -5 )

China can take a hike on this one. Rest assured they aren't worried about "global growth" they're worried about China's growth.

11 ( +12 / -1 )

Chinese Yuan was pegged at 8.28 per dollar until about around 5 years ago. It is currently around 6.20's level. If the Yuan is adjusted another 20 percent,

No, the market will decide. When Yuan goes to floating system just like the rest of world, the market will decide. The artificial manipulation of Yuan should be stopped. Sooner or later, China will pay for all the consequences if they insist fixed currency system to continue.

8 ( +8 / -0 )

Oh no! China concerned about the rest of the world?? Pull the other one, mate!

9 ( +9 / -0 )

When Yuan goes to floating system just like the rest of world, the market will decide.

Which market will decide yuan real time value. Yuan has been appreciating against US $ for several years. In 2009, it was 0.14 of US $. In 2013, it is 0.16 of US $. PRC export volume keep decreasing, Yuan will move southward gradually. It will not happen 1 Yuan is equal to 1 dollar overnight.

China will pay for all the consequences if they insist fixed currency system to continue.

PRC has already lost many manufacturing facilities to more competitive nations. It was not because of currency strength. Rising cost of land and labor is making low value added manufacturing goods such as toys, textile and shoes said good bye to China. However they can afford to withstand the fell out due to their high saving and mountain of reserve.

Singapore and HK pegged their dollars with US. It was a wise move. They did not suffer the cruel fate of Asian financial melt down like SK, Indonesia and Thailand back in 1997.

Canada did not follow US to deregulate market with feather touch. It did not suffer the out of control nightmare of capital flight as US. Market can be wild as beast if there is no regulation and stability.

Unemployment is caused by lack of competitiveness. It is not about the currency issue. Germany, Finland, Singapore and Sweden have high value currency. Their unemployment is relatively low. For example, Germany has no minimum standard wages for lowest pay. Union has to hand out from industrial relation there. Their vocational training match with real life labor market. Due to structure reform, their export is enjoying growth.

At the end, Germany, Sweden and Norway are enjoying steady growth and low unemployment.

3 ( +4 / -1 )

Talk about the pot calling the kettle black. The only thing keeping the U.S. from declaring China a currency manipulator are the political needs we have with them, like NK.

7 ( +9 / -2 )

NathawMar. 09, 2013 - 11:42AM JST

When Yuan goes to floating system just like the rest of world, the market will decide.

Which market will decide yuan real time value. Yuan has been appreciating against US $ for several years. In 2009, it was 0.14 of US $. In 2013, it is 0.16 of US $. PRC export volume keep decreasing, Yuan will move southward gradually. It will not happen 1 Yuan is equal to 1 dollar overnight.

Thanks for the info. I still believe in free and fair trade. PRC should let their currency to float in global market. Free and Fair Trade goes together with the principal of democracy, that's what I would like to see. Set the people of China free.

2 ( +3 / -1 )

For over 20 years now I have been Country of Origin conscious. Lately I do see more and more no longer made in china. I AM happy for that. I suspect china is not.

7 ( +7 / -0 )

Whenever China "calls" for something to other countries you can be sure that their egoism is the reason behind it.

7 ( +7 / -0 )

Whenever China "calls" for something to other countries you can be sure that their egoism is the reason behind it.

Its leaders are aware of that. The rhetoric is for domestic use only.

5 ( +6 / -1 )

"China’s commerce minister appealed Friday to other major governments to avoid suppressing the value of their currencies to boost exports, warning that could hurt global growth."

This, from a Chinese official, set me to laughing so hard I have yet to finish reading the b%%dy article.

3 ( +3 / -0 )

Made in Cihina is fine, but if everything cheap is ONLY made in China,then who will have work?? ¥¥??$$$?? To buy those Chinese goods?? Only Chinese??

-1 ( +0 / -1 )

I believe China renminbi is about right vs US dollar now. If there had being currency manipulation in the few years post 2008 stock market crash, the West should thank China for keeping the global economy from a melt down!

The reason as explain below why there is no free float of the renminbi just yet is because of fear of currency speculation by hot money by traders like George Soros! Remember he made over a billion betting against the pound in the seventies! Why nobody complain about Malaysian peg to US dollar post Asian crisis in 1997? IMF thought it was a good idea then, and not labeled Malaysia a currency manipulator!

So China is right in calling US , Japan and EU to stop sneaky currency manipulation by printing endless dollars, yen. Hope EU don't fall into this downward spiral that nobody wins.

Excerpt: http://lettersfromitia.wordpress.com/2012/01/29/china-rmb-is-not-undervalued/

" If American and England get their way, Chinese people will be paying 50% more for foods, cars, clothing and homes (based on the price of each item per $) That is why the Chinese government is standing in the way. It is protecting its own people from the speculative trading habits of international money traders and fraudulent organizations like The Federal Reserve in the United States.

I am an American, but seeing the prices Chinese people pay, first hand, I know that my country is running a scam against the Chinese government and I want to make them stop. "

-7 ( +1 / -8 )

If American and England get their way, Chinese people will be paying 50% more for foods, cars, clothing and homes (based on the price of each item per $) That is why the Chinese government is standing in the way

It is already happening in China. There are many ghost cities filled with empty high rise apartments within many miles as they are too expensive and nobody can afford. Food are already too high for people to feed themselves. These are the things China does not want the world to know. Open the market.

4 ( +4 / -0 )

I believe China renminbi is about right vs US dollar now.

We can only tell when it is floated.

4 ( +4 / -0 )

“I’m worried that ‘competitive devaluation’ will lead to oversupply of money

Not that China would be a good example of that...

3 ( +3 / -0 )

bannedacctsamMar. 09, 2013 - 07:31AM JST

Very interesting points by the commerce minister of China. I wonder what would happened to the global money supply, prices of good, and trade if China devalued the RmB in response the devaluation of the yen, dollar, euro, etc.

They already did, that's why the actual value of the RmB/yuan is three times what they now use. This act from china is like them calling on Europe to reduce air pollution, a pathetic attempt to drive attention away from themselves

-1 ( +5 / -6 )

@SabrageMar. 09, 2013 - 03:10PM JST

I believe China renminbi is about right vs US dollar now.

We can only tell when it is floated.

We all known what a float will do when currency traders causes big swings and may just corner the market to China's detriment.

Just look at the current gold pricing. This is free market trading but you see a substantial drop in gold. Why? Because of market manipulation by a few big gold players eg George Soros. China, India or other big buyers may prop up gold price by buying and keeping it, but they don't buy at the artificially high price proped up by Soros and co who just do short term buy and sell to profit when 'fools rush in'.

For this reason China is right to restrict renminbi trading in a narrow band so as to reduce the chance of being manipulated by the concerted effort of currency traders. This managed float instead of a free float is designed to take away the 'jackpot bonanza' incentives of the currency traders who try to profit with hot money inflows and withdrawals timing manipulations. The currency traders will have less chance to profit massively under this approach and China will be able to plan ahead how to deal with these 'hyenas' come next day opening bell, perhaps by selling renminbi to counter them or consult US and IMF on best strategy. Remember China renminbi narrow trading band does not mean the renminbi is always strengthening. It weakens as well depending on trader's perception of China's economy vs US dollars. The fact is all governments do not like big currency swings whether it is Japan, Europe, US or China as this makes their government policies much harder to implement.

China fear of free float is as much as one's fear of a nuke. You don't want to test it on an enemy to see if it works because if it works, it is too late. The massive damage will already have being done and is irreversible!

As noted by the Excerpt, it is the purchasing power of Chinese citizens China is trying to keep stable in the face of QE, and her own direct market intervention done but with less frequency now to stabelize this basket of purchasing power for the basic commodities. US QE and Japan yen printing all contribute to inflation in China from more expensive imported goods and raw materials primarily dollar traded oil as main culprit, so China make ocassional interventions to reset the ratio to preserve the purchasing power of the renminbi for her citizens. For China stability is paramount.

0 ( +1 / -1 )

@globalwatcherMar. 09, 2013 - 02:55PM JST

If American and England get their way, Chinese people will be paying 50% more for foods, cars, clothing and homes (based on the price of each item per $) That is why the Chinese government is standing in the way

It is already happening in China. There are many ghost cities filled with empty high rise apartments within many miles as they are too expensive and nobody can afford. Food are already too high for people to feed themselves. These are the things China does not want the world to know. Open the market

One more scheme by the West to stick it to China! The devil in all this is the oil traded in US dollar. If it is traded in other currencies, China won't suffer from as much inflation. QE massive printing of dollars cheapens the dollar and this is the fundamental driver for high oil prices and affect not just China but US and other countries as well.

The difference between China and US/Japan is China do periodic daily market intervention, not that frequent now vs Japan/US doing massive and DEFINITIVE DEVALUATION from massive dollar/yen printing . Japan in spite of self proclaimed float free market tried currency intervention a few times and give up and opt for US style QE due to currency traders pummeling Japan exchange rate keeping it strong regardless of temporary weakening. In other words Japan/US are complicit in the most irreversible manner in curency manipulation/devaluation until they mop up the excess dollars/yen in circulation!

Ghost cities have no relevance in this discussion but if you want to compare, it is the same in US with ghost exurbs in Florida, Las Vegas suburbs etc, Spain, Ireland etc due to real estate greedy developers in cahoot with the local government and easy money building ' and the buyers will come' self delusion!

-1 ( +1 / -2 )

each country will do what it has to stay in power. it manipulating the currency to create economic prosperity will do the trick, they will do it, no matter what any other country says. china is no better or worse than any other country but the ghost cities are china's own doing just as roads to nowhere that only bears use are japan's..

0 ( +0 / -0 )

All these countries are currency manipulators, the USD has fallen against all major currencies in the past year, its just the mechanism of manipulating which is different. China is very direct by setting a rate, US/Japan do it by increasing money supply, QEs, public announcements or vocal preassure. Same thing..... Hence if we're all devaluing, China is also going to do the same but I guess since we're in the same gang and China is not, when China devalues, we're all going to complain.

0 ( +1 / -1 )

To all unreasonable and greedy Japanese:

whatever you have said and believe in, the truth is the RMB is growth against the US dollar.

-1 ( +0 / -1 )

Problem with U.S. is the recent aggressive easing of monetary policy that has driven down the dollar that puts U.S. in a tough spot to criticize China. Rather then criticize China, U.S. administration should focus on issues such as increased market access for U.S. manufacturing firms and financial institutions that want to do business in China, and better protection of intellectual property rights.

-2 ( +0 / -2 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites