China's exchange rate is not a prime factor causing a trade imbalance between China and the US and any attempt to change this rate irrationally will not only affect China's economy, but will disrupt regional and even global economic stability, said a senior Chinese economic official at a press conference in New York Monday.
China's Minister in charge of the State Development and Reform Commission, Ma Kai, described the imbalance as structural in nature that reflects the changing commerce pattern and a high degree of complementarity between the two countries. China's currency exchange rate was not to blame for the US trade deficit, he said.
He challenged the assumption that revaluation of the Chinese currency will help narrow the US trade deficit with China. Noting that the United States has either stopped or substantially reduced the production of the type of goods now imported from China, he said the United States would have to import these goods from other countries even if it cuts down on its imports from China.
He pledged China's efforts to create favorable conditions for the reform and improvement of its currency exchange rate mechanism.
US officials have asked China to stop pegging the value of the Chinese currency to the US dollar. US manufacturers claimed the practice gives Chinese goods a big advantage over American products.
(Xinhua News Agency December 9, 2003)