Stable yuan good for global economic recovery

The exchange rate of Renminbi has become a focus for the International attention. Vice President of the Chinese Academy of Social Sciences Li Yang, who's also the vice president of the China Society for Finance and Banking, says a stable yuan is good for Global economic recovery.

Li Yang believes the Renminbi's exchange rate is at a reasonable level for dealing with the global financial crisis. Its stability has helped exports recover as well as contributed to lifting the world economy from the impact of the financial crisis.

Li Yang, Vice President of Chinese Academy of Social Sciences, said, "The United States is always reiterating that low prices of Chinese products have hurt America's traditional industries. It tends to ignore the fact that cheap Chinese products have maintained commodity prices in the U.S. at a relatively low level. Furthermore, China's trade surplus has accumulated large amount of foreign exchange assets. It actually supported the US government's bailout plans, because America has huge deficit no matter whether it is for the banks or for the government. The U.S. needs a creditor. The current situation in China is helping the US economy warm up. "

Li Yang says economists in different countries hold different views on what is a reasonable level for the Renminbi.

Li Yang, Vice President of Chinese Academy of Social Sciences, said, "There are two factors worth consideration. First is whether domestic companies can normally produce and invest, whether residents can normally use foreign exchange under a certain level of exchange rate. Second is whether the exchange rate can help improve the unbalanced trade situation. The current exchange rate of yuan is qualified under the two factors. "

Li Yang mentions that leaders of the major countries have endeavored to stop the economic fall through cooperation. However, some leaders and economists are blaming China and imposing pressure on China, which is not good for cooperation. Li Yang adds the exchange rate is also a matter of a sovereignty and it's not appropriate for other countries to intervene.