The effects of China’s control of its currency, the renminbi, on the U.S. economy have been overstated, a Chinese diplomat told a group of businesspeople in Denver on Wednesday.
China allowed the renminbi to appreciate 20 percent earlier this decade, yet the U.S. trade deficit continued to climb, said Ruan Zongze, a minister-counselor for policy analysis at China’s embassy in Washington.
“There’s a fairly weak linkage between the renminbi and the trade deficit,” Ruan said. “There are faulty assumptions here in the United States.”
The U.S. has pressured China to allow its currency to appreciate, which would make Chinese imports more expensive here and American exports cheaper there, increasing U.S. jobs.
Ruan spoke at the University of Denver as part of a U.S. Chamber of Commerce-sponsored event promoting increased trade between Colorado and China.
Ruan recommended that businesses operating in China or considering it closely read the Chinese government’s next five-year plan, which is being developed to guide the country from 2011 to 2016. Energy and environment will be key issues in the plan, Ruan said.
Greg Griffin: 303-954-1241 or ggriffin@denverpost.com
