Yuan rise benefits China's outbound investment
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The appreciation of China's currency, the renminbi (RMB), is beneficial for Chinese enterprises investing overseas but negatively affects the country's exporters, Chinese Vice Minister of Commerce Chen Jian said Monday.
China will try to minimize the negative effects of the rise of the RMB, also known as the yuan, on its exports while maximizing the positive effects on the country's outbound investment, the vice minister said at a press conference.
"For the sectors whose exports have been hampered by the appreciation of the RMB, China will accelerate their restructuring," he said.
The RMB has appreciated 24.1 percent against the U.S. dollar since China launched the reform of its currency's exchange rate regime on July 1, 2005, Chen noted.
During the global financial crisis, the value of the RMB, which was nominally stable against the U.S. dollar, actually rose as some countries depreciated their currencies, Chen said.
On June 19, China's central bank announced it would further reform the RMB exchange rate regime to enhance the currency's exchange rate flexibility.
"The changes in China's exchange rate mechanism, made in a controlled and gradual manner, do not indicate a shift in the country's international economic and trade policies," said Chen.
The policy is based on a comprehensive evaluation of China's economic development level and the international economic situation and demand for the Chinese currency, he said.
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