Experts talk about RMB appreciation

How would RMB appreciation affect businesses? Some Chinese experts and entrepreneurs predict millions of Chinese would lose their jobs.

Jin Canrong, prof. from China Renmin University

Jin Canrong, prof. from China Renmin Univ., said, "In economics, we all know it is an ostensible question. The appreciation of the yuan cannot solve trade deficits. If the yuan appreciates quickly in the short term, like by 20 to 25 percent, 10 million Chinese laborers who work in export businesses will lose jobs, which means 30 million people's life will be affected. It will hurt China's economy. If China's economy has big problems, neighboring countries and Asia will be affected. it will furthermore hit the world economy."

Luo Xiaoming, vice executive director of Zhejiang Chamber of Commerce in BJ, said, "If we follow the US's requirement to appreciate the Chinese currency, that will be a new blow to China's export enterprises including those in Zhejiang province. Many firms will have to close and many workers will lose their jobs."