President Hu Jintao said Sunday at the Asia-Pacific Economic Cooperation (APEC) CEO Summit that maintaining the basic stability of the yuan's exchange rate not only is in the best interests of the Chinese economy, but conforms to the requirements for economic development in the Asia-Pacific region and the world at large.
"The market-based, single and managed floating exchange rate system, which China is now following, is consistent with the current status of the country's development, financial regulation and the sustainability of its enterprises," Hu said in an address to the summit, attended by over 1,000 participants.
He noted that China's maintenance of the yuan's stability during the 1997 Asian financial crisis, when many of its neighbors depreciated their currencies substantially, made a contribution to financial and economic stability in Asia and the whole world.
"This time, we will act in the same responsible manner in the handling of the renminbi exchange rate issue," Hu said. "We will maintain the basic stability of renminbi at a reasonable and balanced level, and take further steps to improve the rate-forming mechanism of renminbi along with deepened financial reforms."
In his speech on sustained economic development, he said APEC should play a bigger role and called for exchange among members for success in economic restructuring.
The president also expressed his support for an open and rule-based multilateral trading system, and his confidence in the successful conclusion of the Doha round of negotiations of the World Trade Organization.
He said all members should continue to promote trade and investment liberalization, remove barriers and create a fair environment for competition.
Hu and other APEC economic leaders are expected to display their political will to seek a successful conclusion to the Doha round, at the APEC Economic Leaders' Meeting today and tomorrow.
(China Daily October 20, 2003)