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Beijing rejects US call for market RMB exchange rate
[Beijing, September 2, 2003] Despite pressure from the U.S. and its allies such as Japan to allow its currency exchange rate to fluctuate with the market, Beijing reaffirms its position for a fixed RMB exchange rate via its central bank control.
In recent years, due to favorable exchange rates, China's trade with Japan and the U.S. has increased while the manufacturers in these two developed countries suffer enormously, incapable of competing with cheaper labor in China.
It remains to be seen how long Beijing can hold out in the face of such mounting pressure to change its current currency exchange rate.
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