Chinese ambassador downplays currency fix

Nov. 19, 2011 at 10:39 AM
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NEW YORK, Nov. 19 (UPI) -- The Chinese ambassador to the United States said that the currency exchange rate between the dollar and the yuan would not alone boost the U.S. economy.

As lawmakers in Washington have been pressing China to allow its currency to appreciate on the open market, several high ranking Chinese officials have spoken up against the concept, saying an appreciated yuan would have little impact on the U.S. economy.

In New York at an event celebrating the 6th anniversary of the China General Chamber of Commerce-USA, Ambassador Zhang Yesui said, "The trade imbalance is caused by a combination of factors, including the structural trade and investment differences, divergent patterns of saving and consumption and the international division of labor," Xinhua reported Saturday.

Zhang said the yuan had appreciated 30 percent since the summer of 2005, but the unemployment rate in the United States had jumped from 5.1 percent to 9 percent in the same period.

"This proves that RMB (yuan) appreciation alone will not help to reduce the unemployment rate in the U.S.," Zhang said.

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