China says falling US dollar is a concern

AFP
Wednesday December 12, 2007

China said Wednesday that a weakening US dollar was a bigger global economic concern than the value of its own currency, as it rejected calls for the yuan to be allowed to rise very quickly.

Chen Deming, vice minister of commerce but slated soon to rise to head the ministry, argued that "excessively fast appreciation" of the Chinese currency, called the yuan or the RMB, would be in no one's interest.

"In my capacity of vice minister of commerce, (the Chinese currency) is not the key issue. Currently my focus is more on the depreciation of the US dollar and its possible impact and repercussions for the world economy," he said.

"I sincerely wish to see a scenario where the US economy is getting stronger and the US dollar is getting stronger."

Chen was speaking at a briefing on the sidelines of the third Sino-US Strategic Economic Dialogue, a two-day event bringing together Cabinet-level officials from both sides at a venue an hour's drive from Beijing.

A continued weakening of the US dollar has negative consequences such as a rise in the price of oil and the erosion in the wealth of countries that hold their assets in the US unit, Chen said.

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