China: Don't play blame game over economic issues
China's central bank loosened the yuan's peg to the dollar on
Saturday. The yuan surged to a record high Monday before sliding
back to about 6.82 to the U.S. dollar on Tuesday. Some analysts
said the move was aimed mainly at countering criticism of China's
tight control of its currency and was not a major shift in policy.
China's currency was expected to come up in discussions at the
G-20 meeting in Toronto, which President Hu Jintao will attend. The
U.S. and other trading partners accuse Beijing of keeping its yuan
undervalued in a bid to help Chinese exporters.
"Under the current circumstances, all parties should display
the spirit of tiding over difficulties together ... instead of
playing the blame game, instead of imposing pressure," Foreign
Ministry spokesman Qin Gang said.
Saying the world economic recovery was still "vulnerable," Qin
called for stepped-up communication and cooperation. He said any
further changes to the exchange rate mechanism would be an
independent decision by Chinese officials, though they planned to
make further reforms.
China has said its exchange rate policy should not be a topic of
discussion in Toronto because a single country's currency has never
been on the agenda at any of the previous three G-20 summits. It
also says its currency policy posed no obstacle to global economic
growth.
Beijing allowed the yuan to increase in value from July 2005
until the summer of 2008 by about 20 percent but then abruptly
halted the rise when the global economic downturn began amid
concern that a stronger yuan would hurt its exports.
Last year, the U.S. trade deficit with China totaled $226.9
billion.