Foreign Ministry Spokesperson Ma Zhaoxu's Remarks on the US Senate's RMB Exchange Rate-Related Bill

Despite the strong opposition of the Chinese side, the Currency Exchange Rate Oversight Reform Act of 2011 went through the procedural vote of the US Senate. The Act escalates the exchange rate issue and wields protectionist measures under the pretext of so-called "currency imbalance", which severely violates the WTO rules and obstructs China-US economic relations and trade. China firmly opposes it.

Thanks to its distinctive feature of mutual benefit, China-US economic cooperation and trade has delivered tangible benefits to the two peoples and increasingly become the important foundation and driving force of China-US relations. China and the US are each other's second largest trading partners. China is the fastest growing export market for the US. As is known to all, the RMB exchange rate is not the cause for China-US trade imbalance. The RMB has appreciated by 7% against the US dollar since China decided to further the reform of the RMB exchange rate regime in June, 2010. China will follow through the principle of independent decision-making, controllability and gradual progress, improve the managed floating exchange rate regime and increase the flexibility of the RMB exchange rate, with a view to keeping the RMB basically stable at an adaptive and equilibrium level.

China urges relevant US lawmakers to bear in mind the overall interests of China-US economic cooperation and trade as well as the interests of the US itself, look at the mutually beneficial nature of China-US economic cooperation and trade from an objective and rational perspective and refrain from pressuring China by means of domestic legislation. China calls on the US to discard protectionism, stop politicizing economic issues and take concrete actions to create an enabling environment for the development of bilateral economic relations and trade.

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