US President George W. Bush has suggested that the
China float its currency to help balance trade with the
United States. While China had allowed the yuan to appreciate
gradually in the past two years, it still remains tightly
managed, he said.
still have got a huge trade deficit with China, which
then causes us to want to work with them to let their
currency float. I think that would be helpful in terms
of adjusting trade balances," he told the Asia Pacific
Economic Cooperation forum in Sydney, Australia.
The yuan had appreciated 7.3 per cent since it was upvalued
by 2.1 per cent and taken off the dollar peg in July 2005.
critics, mostly US, say it is significantly undervalued,
giving Chinese exporters an unfair advantage in global
imports from China totalled $121 billion in the first
five months of the current year and are on track to surpass
last year''s record of $287.8 billion when the US trade
deficit with China also reached a record $233 billion.
Chinese commerce ministry said in a recent report that
China could well become the third-largest market for US
exports by the end of the year.
who will meet Chinese president Hu Jintao at the APEC
summit, also said Beijing needed to play a part in defining
global goals on climate change.
order for there to be an effective climate change policy,
China needs to be at the table. And in order to get China
at the table they have to be a part of defining the goals,"
Bush told a joint news conference with Australian Prime
Minister John Howard.
the 21-member APEC forum has said "no" to India
and a slew of other countries that want to join, for now.
"No new members," Japanese ministry of foreign
affairs spokesman Mitsuo Sakaba said when asked.
of the grouping is being delayed, at least until 2010,
according to a draft of a statement to be released by
decision leaves pending membership requests from a dozen
countries, including India, Mongolia and Colombia. The
backlog is due in part to a 10-year moratorium on new
members APEC imposed in 1997 that was supposed to expire
draft statement did not say if the moratorium would be
formally extended. The leaders could decide to change
the terms at their weekend meeting.
new members were being put off because the group, in the
draft''s words, does not want expansion to slow momentum
toward "regional integration and open economies."
the delay also comes from APEC''s complicated politics,
sources said. The group has tried to strike a balance
between rich and poor countries, Asian and American ones.
presence would be a big boost for the Asian camp and its
bid is supported by the United States. But rival China
does not want to see its rising influence diluted.
also see : General
reports on Economy
reports on Trade