Yuan- up bad for China's economy, Minister Warns

To allow the yuan to strengthen against the dollar would hurt the Chinese economy in the short term, has said a senior Chinese officials.
But he said Yi Xiao Chun, Deputy Minister in the Ministry of Commerce, and he expected the currency to rise in the longer term.
He accused other countries in an attempt to force the appreciation now.
There has been speculation that China is preparing to allow the yuan to appreciate by Chinese President Hu Jintao arrives in Washington next week.
Mr. Yi, speaking at the Boao Forum for Asia, a gathering of senior officials and business figures from across Asia on the island of Hainan, south China.
Chinese Ministry of Commerce close to exporters in the country, and reports indicate officials have been pressing strongly against those within the Chinese government who now say that the value of the yuan be allowed to rise.

Politicised debate

China in effect pegged its currency to the weakening US dollar in late 2008 when the effects of the global economic crisis started to be felt here .That has given the country's exporters an unfair advantage ever since critics say because when the value of the yuan is artificially low their goods appear cheaper.

Mr. Yee said: The crisis is not over yet, and an increase in the value of the yuan would hurt China's economy now.
He says that the biggest headache for China is that this is no longer just an economic problem but the focus has been on the relations between the two countries.
The politicization of some politicians and academics, Americans, and because of the difficulties at home and this argument . he says. They put the blame on other countries, including China for their own problems and this is unreasonable.
Deputy Trade Minister refuses to be drawn on what is the appropriate exchange rate for the yuan and the dollar.

Rising imports

But he says that the current level is reasonable and helped keep the country's trade flows are stable.It would be wrong to see the comments also ruled out any rise in the short term though.
Instead it indicates the level of opposition to such a step that exist within some factions in the Chinese government.Hundreds of dollars in bills and notes 100 yuan
Exchange rate between the dollar and the yuan is a sensitive issue for the United States and China
The others in Beijing to be on the grounds that China needs to change its policy.
Holding down the yuan's value by intervening in the market and expensive.

He also suggested that China was likely to announce the trade deficit in March when the release of monthly trade figures at the weekend - the first monthly deficit in more than five years.
Is largely a result of higher commodity prices and strong demand for raw materials to power China's booming economy.

Chinese officials have seized on the deficit to insist the country has "open" policy towards trade, with an emphasis on it is likely to be short-term phenomenon, as is being exported to the previous level.

"Stimulus measures we are still experiencing the impact," he said.

In the past few months I have imported large quantities of iron ore, copper and crude oil coal and steel and this is why our imports have grown strongly.
At the same time the United States and European markets for our goods is still weak, and in spite of our exports are recovering and they do not recover as fast as imports grow.
The minister said he could not say whether this is the direction in the long term. Economists point out that it was likely to have an impact on the short term.
China does not want a trade surplus or a trade deficit insisted Mr. Yee.
We want to be balanced our trade. Our efforts to increase domestic consumption and it works, so we can not simply regard the deficit as a bad thing."