The yuan has lost 9 percent of its value since mid-April, when trade friction between China and the United States intensified.But Chinese Premier Li Keqiang has denied that recent fluctuations in the yuan's exchange rate were intentional by Beijing.He believes that relying on the devaluation of the renminbi to stimulate exports will make small profits and small money, and even damage its own ecological environment.
As the Sino-U.S. trade tariff war heats up, Chinese Premier Li Keqiang stressed yesterday that China will never rely on devaluing the yuan to stimulate exports.
The yuan has lost 9 percent of its value since mid-April, when trade friction between China and the United States intensified.Li Keqiang, speaking at the opening ceremony of Summer Davos in Tianjin yesterday, denied that the recent fluctuations in the yuan exchange rate were intentional actions of the Chinese government.
He said: The one-way depreciation of the RMB exchange rate will do more harm than good to China.China will never take the path of devaluing the renminbi to stimulate exports.Then we earn small profits, small money, and even destroy our own ecological environment.
He pointed out that not only will China not engage in competitive devaluation, but it will also create conditions for the stability of the exchange rate, while continuing to adhere to the direction of market-oriented exchange rate reform.At present, China's balance of payments is balanced and its foreign exchange reserves are abundant. I can clearly say that the RMB is fully capable of maintaining basic stability at a reasonable and balanced level.
Zhao Xijun, deputy dean of the School of Finance and Economics at Renmin University of China, analyzed to Lianhe Zaobao that the Chinese government has not intentionally or allowed the RMB to depreciate, but has made great efforts to prevent the RMB from depreciating.To hedge against depreciation pressure.
He pointed out that except for the U.S. dollar, the renminbi has appreciated against other currencies. This is enough to show that the Chinese government has not allowed the renminbi to depreciate.
Don't engage in flood irrigation and strong stimulus, no longer use investment in infrastructure to stimulate the economy
The market is concerned about what policies China will adopt to deal with the trade war, and the possible impact of these policies on enterprises and employment.Li Keqiang did not directly mention the trade war yesterday, but in his speech he reiterated China's determination to adhere to opening up, continue to deepen reforms, and optimize the business environment for Chinese and foreign-funded enterprises and private enterprises.
Li Keqiang reiterated that China's economy is generally stable and improving, the new drivers of development are growing continuously, and the fundamentals of the economy are healthy.
He said that China will not engage in strong stimulation of flood irrigation, nor will it return to the old path of investing in infrastructure construction to stimulate the economy.However, he said that China will increase measures to provide public goods. This is not a new round of incremental investment, but to withstand the downward pressure on investment and maintain stability.
He also reiterated that the pace of China's opening up will be further accelerated.
One of the motivations for the United States to launch a trade war with China is to force China to reduce market access, so that American companies can compete fairly in the Chinese market and protect the intellectual property rights of American companies in China.
Companies can complain to the Chinese government if they are not treated equally
Li Keqiang reiterated that China treats Chinese and foreign-funded enterprises equally in terms of inspection and certification, tax reduction and fee reduction, and supervision.
He told the entrepreneurs and personnel of international organizations present that if you find problems that are not treated equally in the actual business or inspection process, you are welcome to complain to the Chinese government at all levels. From the local government to the central government, any behavior that does not accept complaints must beMake resolute corrections; anyone who fails to make legal and reasonable corrections after receiving complaints will be punished.The scene immediately responded with warm applause.
Li Keqiang also promised that China will implement a stricter intellectual property protection system and resolutely crack down on violations of Chinese and foreign intellectual property rights in accordance with the law.We need to adopt a system of doubling compensation to make the infringers pay an unbearable price and let the innovators feel at ease to create boldly!
A web article proposing that the private sector should leave the market has aroused public attention recently, and officials have since denounced the statement intensively.Li Keqiang stressed yesterday that the government will unswervingly support the private economy.
He said: We will further improve policies and measures to support the development of the private economy, and resolutely eliminate unreasonable obstacles to the private economy.He promised that the government should especially assist small and medium-sized enterprises to ease financing difficulties and expensive financing, and reduce the burden on enterprises through tax and fee reductions.
He also reiterated that China will further reduce import tariffs on some commodities and maintain multilateralism and free trade rules.He also criticized the United States by name, saying that the problems caused by free trade should be resolved through joint consultations among all countries, not by unilateral actions.
Except for the U.S. dollar, the renminbi has appreciated against other currencies. This is enough to show that the Chinese government has not allowed the renminbi to depreciate.
mdash;mdash;Zhao Xijun, Deputy Dean of School of Finance, Renmin University of China
