Sat, March 20, 2010
Business > Economy

Removing export restrictions better choice for U.S. than pressing China to revalue RMB: experts

2010-03-20 13:44:52 GMT2010-03-20 21:44:52 (Beijing Time)  Xinhua English

The Academic Summit is held in the Diaoyutai State Guesthouse on March 20, 2010, prior to the 11th China Development Forum which is to be held from March 21 to 22. (Xinhuanet)

BEIJING, March 20 (Xinhuanet) -- To reduce the trade deficit, it's a better choice for the U.S. to remove restrictions on exports to China than pressing China to increase the value of yuan.

This is a view expressed by experts Saturday at the academic summit prior to the "China Development Forum 2010" to be held Sunday and Monday.

Nobel economics laureate Joseph Stiglitz said the adjustment of dollar-yuan exchange rate is not likely to do much for the U.S. trade deficit, but "the removal of export restrictions might have a bigger effect."

Actually China can import more from the U.S. if the restrictions are lifted and this is what will contribute to bilateral trade, Stiglitz, also a professor of the Columbia University, said.

Li Daokui, an economist and expert, said as China needs more U.S. products, the two countries should find a way to meet the need, which can help diminish the trade gap as well as create jobs in the United States.

Li, Director of the Center for China in the World Economy, Tsinghua University, also urged those U.S. senators who have not realized this point, to do something that really helps, instead of keeping on asking for a stronger yuan. It will harm both sides if the yuan appreciation is carried out in a hurry, he told the summit.

In early March, Chen Deming, Chinese Commerce Minister, called on the United States to loosen its high-tech exports to China for bridging the trade gap.

The U.S. exports to China range from jumbo jet to farm produce. However, high-tech exports are banned as the U.S. government intensified restrictive measures in 2007, Chen said at a press conference.

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