Home>News Center>China

Leaders meeting focuses on yuan, growth
Updated: 2005-11-30 08:55

The need to cut China's huge balance of payments surplus to fend off U.S. pressure for a stronger yuan is probably high on the agenda of a key meeting of Chinese leaders that began on Tuesday, economists and government sources said.

President Hu Jintao and Premier Wen Jiabao are expected to attend the annual Central Economic Work Conference, which will set the course of policy for 2006. The closed-door meeting usually lasts 3 days.

The Bush administration on Monday determined that China was not manipulating its currency to gain economic advantages but still pressed the Chinese to move more quickly to allow the yuan's value to be set by market forces.
A man lays out various denominations of the Chinese yuan, in Beijing. [AFP]

"The currency has to be on the agenda and there's bound to be a greater emphasis on resolving the balance of payments problem," said a senior economist at the State Information Center, a top government think-tank in Beijing.

The meeting opened a day after the U.S. Treasury declined to name China a currency manipulator, despite the demands of many U.S. law-makers, but served notice that it would keep pressing Beijing to let its currency rise in value.

The yuan did in fact rise on Tuesday to 8.0796 to the dollar, the highest level since it was revalued on July 21 by 2.1 percent to 8.11 and allowed to float within a managed range.

But the yuan's total appreciation against the dollar since July is still only 0.38 percent, prompting criticism in the U.S. Congress that the currency is being artificially held down given China's billowing external surpluses.

China's current account surplus, one of the counterparts of America's huge current account deficit, rose ninefold in the first half of 2005 from a year earlier, topping 8 percent of gross domestic product.

Beijing is trying to reduce the surplus by pressing ahead with gradual currency reforms, which will let supply and demand play a greater role, and by spurring consumption.
Page: 12

Suzhou-Nantong Yangtze bridge
Injured miners treated in hospital
Class resumes in quake-hit Jiujiang
  Today's Top News     Top China News

FM: China-Japan leaders' meet 'impossible'



Leaders meeting focuses on yuan, growth



China to unveil 5-year AIDS control plan



Coal mine death toll expected to reach 151



Malaysia urged to probe abuse cases



China, Mongolia finalize 4,677-kilometer border


  FM: China-Japan leaders' meet 'impossible'
  China to unveil 5-year AIDS control plan
  Snow: China should get credit for yuan moves
  Russia set to get help on slick
  Leaders meeting focuses on yuan, growth
  More funds needed to fight coal fires
  Go to Another Section  
  Story Tools  
  News Talk  
  It is time to prepare for Beijing - 2008  
Manufacturers, Exporters, Wholesalers - Global trade starts here.