Despite American claims that China’s refusal to allow the yuan to appreciate risks the global recovery, ChinaÃ¢â‚¬â„¢s Premier Wen Jiabao made it that China has no intention of allowing the yuan to increase in value.
Ã¢â‚¬Å“I donÃ¢â‚¬â„¢t think the renminbi is undervalued,Ã¢â‚¬Â Wen said yesterday at a press conference in Beijing marking the end of ChinaÃ¢â‚¬â„¢s annual parliamentary meetings, using another term for the yuan. Ã¢â‚¬Å“We oppose countries pointing fingers at each other and even forcing a country to appreciate its currency.Ã¢â‚¬Â
Some senior US officials are calling for tarrifs on Chinese exports to both penalize China, and as a way to eliminate the pricing advantage Chinese products receive when costs are converted.
Ã¢â‚¬Å“Chinese officials are alone in their refusal to acknowledge that the yuan is undervalued,Ã¢â‚¬Â Senator Charles Grassley of Iowa, the ranking Republican on the Senate Finance Committee, said in a statement responding to WenÃ¢â‚¬â„¢s remarks. Ã¢â‚¬Å“If they choose to stick their heads in the sand, weÃ¢â‚¬â„¢ll have to find another way to address this problem because itÃ¢â‚¬â„¢s been going on for far too long.Ã¢â‚¬Â