The exchange rate for the yuan, according to Chinas commerce minister, is within a “basically reasonable level,” and therefore is not responsible for the current trade imbalance with the U.S., according to Chen Deming, China’s minister of commerce, in comments published Monday in the People’s Daily, according to a Reuters report.
Chen, in attendance at the G20 summit meeting in Cannes, France, said in an interview, “If China shows an overall trade balance with other countries but only sees a relatively big trade imbalance with one particular country, that means it is not a result of an exchange rate issue.”
He added, “Currently, the yuan exchange rate is within a basically reasonable level and our country’s trade surplus is just slightly above 1% of GDP.” Beijing has been actively working to reduce its economic dependence on foreign exports by pushing for an increase in domestic demand.