“We don’t believe the yuan is undervalued,” Wen Jiabao told journalists this week. The Chinese premier added: “China will choose the right time to resume the fluctuation of the yuan… instead of being subject to foreign pressure.” That’s not likely to satisfy members of America’s Congress. More than 100 of its members greeted Wen’s remark by signing a letter demanding that the Obama administration designate China as a “currency manipulator”. Cornell University’s Eswar Prasad told the Financial Times the situation was becoming risky. “On both sides the Chinese and US leadership feels you have to keep the situation on an even keel, but with domestic feelings running high there is a risk that it gets out of control.”
© ChinTell Ltd. All rights reserved.
Exclusively sponsored by HSBC.
The Week in China website and the weekly magazine publications are owned and maintained by ChinTell Limited, Hong Kong. Neither HSBC nor any member of the HSBC group of companies ("HSBC") endorses the contents and/or is involved in selecting, creating or editing the contents of the Week in China website or the Week in China magazine. The views expressed in these publications are solely the views of ChinTell Limited and do not necessarily reflect the views or investment ideas of HSBC. No responsibility will therefore be assumed by HSBC for the contents of these publications or for the errors or omissions therein.