China will not let its currency strenghten
Wen Jiabao, Chinas premier minister, made it clear yesterday that China will not give in to US and European demands for the Yuan to strenghten. Beijing are becoming more defiant against foreign pressure regarding their currency policy.
“On the one hand, you are asking for the renminbi to appreciate; and for the other hand, you are taking all kinds of protectionist measures”, said Jiabao.
He find that by keeping the Yuan stable against the Dollar, China is contributing to the global recovery.
Some economists have forcasted a policy shift in order to stop the expected inflation pressure. But Wen Jiabao said that even though the property prices have risen too quickly, there are no immediate signs of inflation yet. But he ment that China have to watch out carefully, because inflation might emerge.
