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Li Jian, Vice Director of the Department of China's Foreign Trade Studies at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce |
"The exchange rate of the renminbi will keep climbing; its appreciation is both a short- and long-term trend," said Li Jian, Vice Director of the Department of China's Foreign Trade Studies at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce. The quantitative easing monetary policy adopted by the United States will continue to allow the U.S. dollar to depreciate, causing the renminbi to face enormous appreciation pressure.
It is widely known that foreign trade is an important part of China's economic growth and has played a significant role in providing job opportunities. Since the beginning of the global financial crisis, slackening exports and the rising cost of raw materials have put some export-oriented companies into difficulty. Li believes that if the renminbi appreciates sharply, it will directly affect China's employment environment and could even disrupt international supply chains.
Li said that China's exchange policy for 2011 will ensure that the renminbi appreciates gradually and smoothly, avoiding sharp increases that could negatively impact China's economy. "I don't think the appreciation of the renminbi in 2011 will be much higher than that of this year. It won't be higher than 6 percent," said Li. |