CRI听力: Currency Appreciation of Limited Help to Trade Rebalance: Commerce Minister

China's Minister of Commerce, Chen Deming (Chun Derming) says the appreciation of the country's currency is of "limited help" in solving global trade imbalance. China is experiencing a narrowing trade surplus with the stable yuan.

He says pressure on yuan appreciation is "irrational". Shuang Feng has more.

Speaking at the China Development Forum 2010, Chen De ming said the yuan exchange rate is not undervalued, and pressure on yuan appreciation is "irrational" and will bring no good to both sides.

He noted that despite the fact thatthe yuan had appreciated by more than 20 percent from 2005 to 2008, China's trade surplus increased in the three-year period.

By contrast, as China has kept its currency stable since 2009, the country's total trade surplus fell more than 30 percent in 2009, and continues to decline another 50 percent year on year in the first two months this year.

"China's trade surplus decreased over a half in the first two months of this year. Personally speaking, I expect the country will see an overall trade deficit in March."

He said the exchange rate issue is something entirely within China's sovereign rights instead of matters that can be discussed between two nations.

The commerce minister stressed China will not sit back and "turn a blind eye" if there is any sanction from the United States.

The U.S. Treasury Department is to decide whether to label China as a currency manipulator in a report to the Congress next month.

Chen Deming also said it is only "partial" to conclude that imbalances in global trade and payment have caused the global crisis.

"The imbalance also exists in the areas of global wealth distribution, natural resource ownership and consumption and the international monetary system. It touches many systematic and structural concerns, not just about saving, trade and consumption."

Chen warned that rising trade protectionism could hamper the global economic recovery and pose threat of a economic "double-dip".

Shuang Feng, CRI news.