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BEIJING, Feb. 19 (Xinhua) -- U.S. political rhetoric has recently been obsessed with the exchange rate of the renminbi. President Barack Obama has indicated on several occasions that he would take a tougher stance on this issue in order to address trade imbalances between his country and China.But does the renminbi hold the key to this issue? What are the backstage calculations behind those demands from Washington?RENMINBI A WRONG TARGETWhile addressing Democratic senators early this month, Obama said the issue of renminbi exchange rate must be addressed to ensure that American products will not be put into a huge competitive disadvantage given the fact that China is going to be one of America's biggest markets.In an interview with Businessweek on Feb. 10, Obama said he and Chinese leaders are going to have some "very serious negotiations" on the renminbi issue.Supporters of Obama include economists such as Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics. Those experts say China's huge trade surplus is a result of an undervalued renminbi. Appreciation of the Chinese currency, in their view, would re-balance China's international trade.However, the validity of such argument is questionable.The Japanese yen, for example, has been appreciated enormously against the U.S. dollar over the past 40 years. Yet Japan's trade surplus with the United States has been continuously on the increase over the same period.The case with the Japanese yen has clearly demonstrated that international payment is not necessarily entirely linked to currency exchange rates. International trade balance is rather determined by international division of labor and product competitiveness.Stephen King, chief economist of the HSBC bank, said it is unreasonable to simply attribute China's big trade surplus to an undervalued currency. China's high savings rate is a more important factor in this respect, he told Xinhua.Nobel Prize laureate Andrew Michael Spence shared King's argument."Reducing the surplus in China involves deep structural change, much as reducing the U.S. deficits does. China's high savings are embedded in the structure of the economy," Spence wrote in Jan. 21's Financial Times.Without structural change, an appreciation of the renminbi might well lead to continued high savings and slow economic growth in China, rather than to a reduction of China's trade surplus, he wrote.International Monetary Fund (IMF) chief economist Olivier Blanchard believes that renminbi appreciation is not a solution for the U.S. economy.According to an IMF model, the American GDP will grow by 1 percent when the renminbi appreciates by 20 percent and other major Asian currencies also appreciate by a similar margin, he told Xinhua."This would be good news for U.S. growth. But this is clearly not enough, by itself to sustain growth in the United States," said Blanchard.World Bank chief economist and Vice President Justin Yifu Lin also said that the appreciation of the renminbi will not solve the problem of trade imbalance between China and the United States. On the contrary, such a move might damage both economies.CHINA BASHING NOT HELPFULObama has frequently attacked China over the renminbi issue in recent months. His motives are thought-provoking.In an article titled "Obama bashes China in order to win midterm elections," Japanese weekly Choice pointed out that after one year in office, the U.S. president now faces a sharp drop in approval ratings, a double-digit unemployment ratio and the loss of Democratic "supermajority" in the Senate.Trying to win the midterm elections under such circumstances, Obama had moved toward a "China-bashing" policy since the end of last year, including imposing high tariffs on Chinese products and pressuring China on renminbi exchange rate.But the truth is China has become the largest victim of U.S. trade protectionism since the outbreak of the global financial crisis.According to statistics released by the United States International Trade Commission, there were roughly 50 trade remedy cases filed by the United States between January and November 2009, half of which targeted China.At the end of last year, Chinese Premier Wen Jiabao said in an exclusive interview with Xinhua that some foreign countries kept asking China to appreciate its currency while using various protectionist measures against China. Their real motive was to contain China's growth, he said.Wen reiterated that China will never yield to external pressures on the exchange rate issue.In essence, a country's exchange rate policy is a matter of sovereignty.During a meeting with a visiting delegation of U.S. Chamber of Commerce in May 2005, Wen made it clear that the reform of renminbi's exchange rate was a sovereign right of China, and that every country had the right to choose a foreign exchange system compatible to its own national conditions and a reasonable exchange rate level.Wen said China would obey the rules of a market economy, but would never give in under foreign pressure.Any foreign pressure or attempt to manipulate the issue via news media represented a politicization of economic issues, which was unhelpful, the premier added.George Gilder, founder of Discovery Institute, said that it is neither realistic nor helpful for the United States to raise the renminbi exchange rate issue again with China.Pieter Bottelier, former chief of the World Bank's Resident Mission in China, told Xinhua that China and the United States share broad common interests.A prosperous, stable and strong China is in the interests of the United States and vice versa, said Bottelier. The two nations need to settle their differences through various dialogue mechanisms, he added.In recent years, China has been making efforts to balance international. The renminbi has been steadily appreciated against the U.S. dollar and the euro.Between July 2005, when China began its renminbi exchange rate reform, and the end of 2009, the value of the renminbi has appreciated by 21.21 percent against the U.S. dollar and up by 2.21 percent against the euro.Under such circumstances, China has been the fastest growing export market for the United States in recent years.In 2009, U.S. exports to China amounted to 77.4 billion dollars, accounting for an increasingly larger share in the country's total exports.During the same period, U.S. trade deficits with China dropped by 16 percent year-on-year.In the Asian financial crisis of late 1990s, China won worldwide applause for keeping a stable exchange rate of the renminbi.In the ongoing global financial crisis, while the world's major currencies all lost value, China has remained committed to a responsible renminbi exchange rate policy and has made significant contributions to the recovery of the global economy.Many experts familiar to China-U.S. trade pointed out that in order to achieve trade balance, the United States should take positive and concrete steps, such as increasing hi-tech exports to China and allowing Chinese firms to acquire shares in U.S. financial and technology sectors.

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BEIJING, March 23 (Xinhua) -- China's year-on-year inflation rate was expected to be between 2 to 2.5 percent for the first quarter this year, the country's top economic planner said here Tuesday.The consumer price index (CPI), a main gauge of inflation, would see a "moderate increase" in the first quarter, the National Development and Reform Commission (NDRC) said in a statement on its website.China's CPI rose 2.7 percent from a year earlier in February, according to data from the National Bureau of Statistics.Food prices would begin to fall as the weather got warmer, said the statement. In February, food prices rose 6.2 percent from the previous year due to the Lunar New Year holiday and poor weather.The Lunar New Year holiday, or Spring Festival, is the most important traditional festival in China for family reunion. People usually spend a lot on food, alcohol, cigarettes and gifts during the period.The February CPI was within normal range, compared with the Spring Festival months in previous years, said Zhou Wangjun, deputy director of the Department of Prices of the NDRC.However, Zhou warned that there were still uncertainties in the price trend, including fluctuation in international commodities prices.China targets a consumer price rise of around 3 percent this year, according to a government work report delivered by Premier Wen Jiabao at the opening of the annual session of the National People's Congress earlier this month.

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BEIJING, Feb. 25 (Xinhua) -- China's labor unions had played an irreplaceable and unique role in boosting stable economic development and employment stability, Chinese Vice President Xi Jinping said here Thursday.The Chinese government attached great importance to the role of labor unions in China's economic and political arenas and supported labor unions to better safeguard workers' legitimate rights and interests, Xi said.Xi made the remarks in his speech at the opening ceremony of an international forum on economic globalization and trade unions in Beijing.Chinese Vice President Xi Jinping addresses the opening ceremony of an international forum on economic globalization and trade unions in Beijing, China, Feb. 25, 2010As a developing country with 1.3 billion people, China should take both its industrialization and creating enough jobs for people into consideration and make comprehensive and balanced plans, Xi said.

BEIJING, Feb. 10 (Xinhua) -- China has decided to draft new guidelines for poverty reduction through development for the next ten years, according to a statement of an executive meeting of the State Council held Wednesday.The meeting was chaired by Premier Wen Jiabao.Participants of the meeting heard a report on the implementation of China's Rural Poverty Alleviation and Development Program (2001-2010).The statement said that Chinese government has made great efforts to lift the rural poor out of poverty by development in the past decade and has met the United Nations Millennium Development Goal (MDG) to halve the the proportion of people living on less than one U.S.dollar a day "ahead of schedule".Other strides achieved by China are: noticeable improvement in the economic strength and infrastructure in impoverished regions, ecological degradation being brought under control, according to the statement.The country is also said to have made good progress in construction of a social security network, which has been extended to cover the nation's rural areas with the establishment of a minimum living standard system, the new rural cooperative medical system and the pilot old-age insurance system.The statement said China had been charged with an uphill task in poverty alleviation due to factors such as a large impoverished population, frequent threats of natural disasters, deep-rooted conflicts restraining the development of the poor areas.The poverty reduction departments were told to intensify the relief work by integrating the development of urban and rural areas, and uphold the policy of supporting the poor through economic development.The statement also called for great efforts in the forthcoming decade to ensure the rural per capita net income enjoying a higher growth than the national average.Efforts should also be made to gradually improve the health, the living standard, and capabilities of steady progress for the poor, said the statement.

BEIJING, Feb. 18 (Xinhua) -- Senior Chinese leader Zhou Yongkang has encouraged students from Xinjiang who are attending school in southern Guangdong Province to study hard and become qualified builders of the country.Zhou, a member of the Standing Committee of the Political Bureau of the Communist Party of China(CPC) Central Committee, made the remarks when replying to a letter written by the 12th graders of Guangdong Guangya High School on Sunday, or the first day of the Chinese Lunar New Year.Zhou visited the time-honored school in Guangzhou, capital of the southern province, last September and talked with the students from northwestern Xinjiang Uygur Autonomous Region. They wrote a letter to Zhou before the Spring Festival, which fell on Sunday.Zhou said in the letter that launching classes for high school students from Xinjiang in inland provinces is a major decision made by the Party and the government. It aims to let Xinjiang's children to enjoy better education so they can grow up healthily and make greater contributions to their hometown and the country.Zhou said the 56 ethnic groups in the country are a family and they have gone through thick and thin together to forge the flesh-and-blood ties.Zhou said the Party and government are exerting great efforts to address major issues including development gap between southern Xinjiang and other western regions, and the eastern coastal regions of the country.He told students that the CPC Central Committee is to hold a meeting on Xinjiang work, at which major decision will be made to boost Xinjiang's development. He also encouraged students to contribute to ethnic solidarity and safeguard the national unity.

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UNITED NATIONS, March 18 (Xinhua) -- China on Thursday called upon the international community to render more support and provide more assistance to Afghanistan, and voiced its support for a leading coordination role by the United Nations in the reconstruction of the south Asian country.The appeal came as Li Baodong, the permanent Chinese representative to the United Nations, was speaking to a UN Security Council meeting on the current situation of Afghanistan.The international community must keep focused on Afghanistan, which is currently at a key transitional period, and increase support and assistance to enhance Afghan sovereignty and capacity for development, Li said.The international community should also step up the efforts to assist the country in strengthening its military and police forces, promoting the process of national reconciliation in the nation, he said.He said that China supports the leading coordination role played by the United Nations in helping Afghanistan in its reconstruction process.China had actively supported and participated in Afghanistan's peaceful reconstruction, he said, adding that China will continue to provide assistance to Afghanistan within its capacity.China had invited Afghan President Hamid Karzai to visit China on March 21-25, Li said, adding that he is confident that visit will achieve positive results.

WASHINGTON, March 24 (Xinhua) -- China and U.S. economic and trade frictions should be handled appropriately to advance the healthy and steady development of the bilateral economic and trade ties, a senior Chinese trade official said on Wednesday."For the moment, the biggest challenge facing the China-U.S. economic and trade relationship is trade protectionism and the politicizing of our economic and trade issues," Chinese Vice Commerce Minister Zhong Shan told reporters at Embassy of China in Washington. "We hope that China and the U.S. can treat each other as partners instead of rivals."Zhong said China is against the tendency to politicize bilateral economic and trade issues.Under the pressure of the election year and high unemployment rate, some U.S. senators last week proposed a legislation to press China to appreciate its currency.The bill requires the U.S. Treasury Department to identify countries with "fundamentally misaligned currencies" and asks the Commerce Department to investigate currency undervaluation as a " countervailable subsidy."Meanwhile, 130 U.S. congressmen wrote to the government, demanding the Obama administration take actions to appreciate the RMB against the dollar."The RMB exchange rate is not the root cause for U.S. trade deficit with China or key to U.S. unemployment," Zhong said.He said that the economic structures of the two countries are highly complementary. To force an appreciation in the RMB cannot resolve U.S. deficit or unemployment.Zhong noted that given the large scale, broad scope and rapid development of the China-U.S. bilateral economic and trade cooperation, frictions and problems are inevitable."As long as the two sides stick to a strategic and long-term approach to our economic and trade ties and appropriately handle trade frictions through communication and consultation, we can find common grounds and shelf differences and constantly further the bilateral economic and trade relations."

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BEIJING, March 16 (Xinhua)-- The China "Summer Davos" summit, due to be held in September in the north China city of Tianjin, will again focus on sustainability and the green economy, said Andre Schneider, managing director of the World Economic Forum (WEF), Tuesday.The detailed agenda would be designed to meet the changing new growth context with more discussion of new business models and technical innovations, Schneider said in a press briefing in Beijing.The "Summer Davos" 2010, or the fourth Annual Meeting of the New Champions, would be a continuation of the third-round meeting last year, which had focused on the way out of crisis, said Schneider.With the theme, "Driving Growth Through Sustainability," this year's summit, from Sept. 13 to 15, is expected to attract more than 1,500 participants, including business executives, politicians, economists and scientists from about 90 countries.On the global economy picture, Schneider said the deep financial and structural roots of the "Great Recession" made it difficult to predict the shape of future growth.Schneider said the future also remained unclear for advanced economies, which the Organization for Economic Cooperation and Development forecast, would see a possible 10-percent unemployment rate in the second half of this year.Though the emerging and developing economies accounted for almost 50 percent of global GDP, their growth was not decoupled from the rest of the world, said Schneider.

BEIJING, March 10 (Xinhua) - A senior Chinese lawmaker said on Wednesday that legislation requiring public officials to declare their personal assets is under consideration and seen as a move to prevent corruption and improve government transparency."We are researching the issue, since the legislation requires mature consideration of all conditions," said Li Fei, deputy director of the Legislative Affairs Committee of the National People' s Congress (NPC) Standing Committee.Li noted that the legislation should be assisted by the establishment of the personal credit system, which details individuals' financial information even if assets are not declared.Premier Wen Jiabao said on March 5 that high priority should be given to fighting corruption and encouraging integrity among public officials.Leading cadres at all levels, especially high-ranking ones, must resolutely implement the central leadership's regulations on reporting their personal financial situations and property, including incomes, housing and investments, as well as the jobs held by their spouses and children, Wen said.

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