'Rebalancing and renormalization' are center of challenge

As Martin Wolf, chief economics commentator at the Financial Times, talked with China Daily, the US Federal Reserve was about to publish its statement and the world was watching to see if the Fed would raise interest rates.

Anticipation of rate hikes has pushed up the value of the US dollar. The yuan has already been weakening against the dollar for a while, and economists have talked about the risk of a capital outflow.

Wolf said that even if the Fed decides to raise rates, probably in the summer or early fall, interest rates would remain quite low for a long period and "the exchange rate can't be used as a major way to reignite growth in China".