Follow the Debate - Yuan Revaluation and Internationalisation News Archive October 2011
Follow the Debate
Yuan Revaluation & Internationalisation
You can scan the Articles over time and see it evolve and change
Graeme has been using ChinesePod since 2007
"I highly recommend ChinesePod, I haven't found any Online teaching programmes that come close."
A foreign target is needed to shift domestic attention away from the frail US economy. The RMB definitely fills this need. However, a funny fact is that the RMB has risen by about 30 percent in five years while the US unemployment rate has increased from 7 percent to 14 percent.
No need to sweat over Senate yuan bill - Global Times
The Wall Street Journal 27/10/2011
China Calls Rapid Yuan Rise Impossible
Unusually Strong Wording Signals Beijing May Put Brakes on Currency as Growth Concerns Edge Out Inflation
BEIJING—China said that rapid yuan appreciation in the near term is out of the question as it would harm China's economic growth, in one of the strongest responses yet to U.S. pressure for a faster rise in the currency.
Paulson: U.S. Should Think Twice About Forcing Yuan Issue
China should embrace a faster appreciation of its currency but U.S. policy makers should be wary of taking punitive actions to force the issue, former U.S. Treasury Secretary Henry Paulson said Tuesday.
Getting Tough With China (the Right Way)
Hold Beijing's feet to the fire over its slide back into mercantilism.
So it appears that U.S. House Speaker John Boehner may be able to sideline Senate legislation to punish China for its supposed currency manipulation. House Democrats are pressing for a vote, but Mr. Boehner deserves credit for resisting this pressure despite President Obama's lack of help and GOP Presidential candidate Mitt Romney's call for anti-China tariffs.
XinHua News 26/10/2011
U.S. House Speaker reiterates opposition to passing China currency bill
WASHINGTON, Oct. 25 (Xinhua) -- Speaker of the U.S. House of Representatives John Boehner reiterated on Tuesday his opposition to taking up a bill passed by the Senate on so-called China's currency manipulation, saying that it is "a very dangerous policy. "
Boehner told a news conference that President Barack Obama should take the lead on the issue of China's currency, instead. " The fact is the president of the United States should ought to stand up and take a position," he said.
People's Daily 22/10/2011
MB to become one of global reserve currencies: Expert
WASHINGTON -- China's currency yuan is expected to become an important global reserve currency, although it will not challenge the US dollar's dominant role in the international monetary system, said a US economist on Wednesday.
In the short term, the US dollar's status in the world remains unrivaled, but in the long run, there would be a different picture if the US economy fails to support its global privilege, Barry Eighengreen, professor of Economics and Political Science at the University of California, Berkeley, said at a book discussion event at the International Monetary Fund (IMF) in Washington.
Caixin Online 19/10/2011
Hong Kong Begins Offshore Yuan Denominated Gold Trade
Trading of the world's first offshore yuan denominated spot gold contracts started October 17 in Hong Kong under the newly-launched Renminbi Kilobar Gold program
(Beijing) – Hong Kong has opened the world's first offshore yuan denominated spot gold contracts, further expanding the city's role as an international hub of the Chinese currency.
The Wall Street Journal 19/10/2011
Chamber of Commerce CEO: China Currency Bill Invites Retaliation
The head of the U.S. Chamber of Commerce warned Monday that China would retaliate by slashing prices or through other means if U.S. lawmakers press forward with legislation targeting Beijing’s management of its currency.
People's Daily 19/10/2011
Govt slams Romney yuan attacks
BEIJING - The Foreign Ministry said on Monday that attacks by leading US Republican presidential candidate Mitt Romney on Chinese trade and currency practices were "irresponsible".
Romney last week threatened trade sanctions against China if the world's No 2 economy does not halt what he claimed was currency manipulation, unfair subsidies and rampant intellectual property theft.
Romney's tough stance came as he has sought to stake out differences with President Barack Obama and tap into the US public's rising concern over China's economic and military growth.
"We think that frequently blaming others, looking for scapegoats and even misleading the public is an irresponsible attitude," Foreign Ministry spokesman Liu Weimin said at a news conference.
The Wall Street Journal 17/10/2011
Wen Says China to Keep Yuan Basically Stable
SHANGHAI—Chinese Premier Wen Jiabao said China will keep the yuan basically stable to avoid hurting exporters, in the highest-level statement yet from Beijing on its currency policy since the U.S. Senate approved a bill that would take China to task over the issue.
The Wall Street Journal 15/10/2011
Getting Kabbalistic with the Yuan Exchange Rate
And maybe there was a subtle joke in there, too. Sharp-eyed traders noticed the pronunciation of the numbers in Thursday’s rate — 6.3737 (liudian sanqisanqi) yuan to the U.S. dollar – sounds in Chinese like 有点生气生气 (youdian shengqishengqi), or “a little bit angry.”
Let’s hope tomorrow’s parity isn’t 6.7474, which in Chinese sounds like “go die, go die!”
Kaixin - They are right ...... : )
Chinese Bashing is All the Rage — But No Antidote
Let’s all blame China.
The latest episode of U.S. China-bashing is a Senate measure that would call on the White House to impose unilateral and broad-based tariffs against countries with “misaligned” currencies.
People's Daily 15/10/2011
New Yuan FDI scheme unveiled
Analyst say program will broaden channels for the currency overseas
BEIJING - China on Friday formally launched a pilot program that allows foreign enterprises to use the yuan to invest in the country, as part of its efforts to raise the global profile of the currency.
The People's Bank of China, the central bank, issued the rules on foreign direct investment (FDI) in yuan in a statement, saying that institutional and individual investors from overseas will be able to apply for permits to make direct investment in China with the settlement in yuan.
The Ministry of Commerce also unveiled detailed definitions and application procedures for the process, explaining that applications for yuan FDI worth 300 million yuan ($47 million) or higher must be submitted to the Ministry.
The move was seen as a major step in China's ambitions to internationalize the yuan after Vice-Premier Li Keqiang pledged in August to support Hong Kong as a key offshore yuan hub and to encourage overseas companies to make direct investment in the mainland with the currency.
Global Times 14/10/2011
Asia Today: China Bites Back at U.S.- VIDEO
Asia Today: China and the U.S. remain at odds over China’s control of the yuan. The WSJ’s Mariko Sanchanta, Ken Brown and Alex Frangos discuss.
China Seeks to Lower Yuan as U.S. Bill Advances
BEIJING—In a defiant response to U.S. Senate approval of a bill that would pressure China to let its currency rise faster, the nation's central bank set the guideposts for the yuan substantially lower on Wednesday and warned that the bill could imperil further currency reform.
But the Chinese currency ended higher in Wednesday trading as investors took it higher within its tight trading range, underscoring skepticism that the bill will become law, and taking into account the pressures that are pushing Beijing to let the yuan rise.
The People's Bank of China, which tightly controls the yuan's trading on the ...
The Wall Street Journal 13/10/2011
Asia Today: China Bites Back at U.S.- VIDEO
Asia Today: China and the U.S. remain at odds over China’s control of the yuan. The WSJ’s Mariko Sanchanta, Ken Brown and Alex Frangos discuss.
China Seeks to Lower Yuan as U.S. Bill Advances
BEIJING—In a defiant response to U.S. Senate approval of a bill that would pressure China to let its currency rise faster, the nation's central bank set the guideposts for the yuan substantially lower on Wednesday and warned that the bill could imperil further currency reform.
But the Chinese currency ended higher in Wednesday trading as investors took it higher within its tight trading range, underscoring skepticism that the bill will become law, and taking into account the pressures that are pushing Beijing to let the yuan rise.
The People's Bank of China, which tightly controls the yuan's trading on the ...
Global Times 13/10/2011
China lambasts US Senate currency bill
"The bill cannot solve unemployment or other economic problems in the US. It is essentially practicing trade protectionism by making an accusation of currency manipulation, which is a serious violation of World Trade Organization (WTO) rules," China's Ministry of Foreign Affairs spokesman Ma Zhaoxu said.
In defiance of China's repeated warnings, the Democrat-led Senate passed the Currency Exchange Rate Oversight Reform Act with a 63-35 majority Tuesday.
The legislation is now two steps away from being signed into law, including an approval in the House of Representatives where some Republican leaders had called it "dangerous" and refused to schedule a vote on it.
Ma on Wednesday called on the US government, Congress and various committees to oppose the legislation and to tackle trade protectionism.
If signed into law, the act would make it easier for the US government to slap retaliatory tariffs on imports from countries that are deemed currency manipulators.
People's Daily 13/10/2011
China calls President Obama to block 'harmful' currency bill
China has urged the Obama administration to block a controversial currency bill aimed at putting pressure on the country to appreciate the yuan.
The bill is a protectionist step that "gravely violates World Trade Organization rules," Foreign Ministry spokesman Ma Zhaoxu said yesterday after the US Senate approved it in a 63-35 vote and sent it to House of Representatives.
Ma said the move was "harmful and unbeneficial."
House Speaker warns of trade war risk
US legislation designed to press China to let its currency rise poses a "very severe risk" of a trade war and should not be taken up by Congress, House of Representatives Speaker John Boehner said yesterday.
"I understand that people are concerned about the value of China's currency. I'm concerned about it as well," said Boehner. "What I don't believe is appropriate is for the Congress of the United States to take this issue up and to do it within a legislative form."
The Wall Street Journal 12/10/2011
Fast Enough? China’s Currency Record
Beijing doesn’t deny that it stage manages the yuan’s rise and says that some day it will let the yuan float — though it never says exactly when. Still, the yuan’s rise doesn’t seem as far out of whack as complaints would have it.
The Kind of Chinese Currency Manipulation the U.S. Likes
In recent days, the Chinese central bank has been intervening in currency markets to drive up the value of the yuan against the dollar while other currencies have been falling against the dollar. This is the kind of currency “manipulation,” that the U.S. Treasury likes — and has taken note of privately. But it’s wary of patting the Chinese on the back. That’s because the only safe political position in Washington on Chinese currency issues is that Beijing isn’t doing enough.
People's Daily 12/10/2011
Politicizing exchange rate harms China, US
With the U.S. presidential election drawing near, the RMB exchange rate issue has again become a prime opportunity for grandstanding by some U.S. politicians. The U.S. Senate cleared a procedural vote on the Currency Exchange Rate Oversight Reform Act of 2011 on Oct. 3.
China's yuan strengthens, while U.S. Senate debates bill
China's currency has kept on strengthening amid stubbornly weak recovery of the Western developed economies, and the necessity to rein in an elevated inflation at home.
And, the U.S. Senate is debating a bill sponsored by unemployment conscious Democratic senators who have called for punitive legislative efforts to pressure Beijing to appreciate its currency, the yuan, against the greenback.
The Wall Street Journal 11/10/2011
Huntsman Warns of ‘Trade War’ with China
Jon Huntsman, the presidential candidate and former former U.S. ambassador to China, said Monday that he opposes placing tariffs on Chinese goods in order to combat perceived currency manipulation.
Yuan Hits Record After Weeks of Volatility
BEIJING—Traders pushed the yuan to a new high Monday, capping a period of relatively volatile trading that analysts say could further the Chinese government's effort to encourage two-way swings—and make the currency less of a sure bet for speculative foreign-capital inflows.
China Daily 9/10/2011
China: Yuan bill to hurt US job growth
BEIJING - China warned the United States on Monday of a trade war if Congress passes a bill pressuring Beijing to appreciate the yuan. The warning came a day before US lawmakers are set to vote on the bill.
The Wall Street Journal 8/10/2011
Leaders Step Up Pressure on China
U.S. leaders took swipes at China on Thursday, as the Senate voted to advance a bill to penalize countries said to be manipulating their currencies and President Barack Obama accused the country of manipulating the yuan.
The Wall Street Journal 7/10/2011
U.S. Intensifies Criticism of China's Yuan Policy
WASHINGTON—U.S. criticism against China swelled in Washington on Thursday as sharp words from President Barack Obama and a Senate vote on a currency measure illustrated how Beijing's policies are emerging as an issue in next year's elections.
Mr. Obama, at a White House news conference, accused China of manipulating the yuan and taking other actions to bolster its growth at the expense of the rest of the world.
Not the Time for the U.S. to Slam China
By Nicholas Hastings
China may well be right this time.
Calls by the U.S. for Beijing to speed up appreciation of the yuan are not the solution.
In fact, slowing growth in the world’s second largest economy as the global recovery continues to falter could well make matters worse.
The trouble is the U.S. is getting desperate.
The Wall Street Journal 6/10/2011
Boehner on China Bill: ‘A Dangerous Thing’
China may have a friend in the U.S. Congress after all.
House Speaker John Boehner on Tuesday said it was “dangerous” for lawmakers to pass legislation aimed at addressing concerns about China’s currency, saying it goes well beyond Congress’s responsibilities.
Senate Moves to Punish China for Yuan's Low Value
WASHINGTON—The Senate voted Monday to move ahead with a bill that would punish China for keeping the value of its currency low, a measure that lets lawmakers deflect some of the blame for the sour U.S. economy on another country.
Guest Contribution: How to Value a Currency
Arvind Subramanian
With the Senate about to take up legislation to penalize China for “manipulating” its currency and keeping it artificially undervalued, we asked Peterson Institute of International Economics economist Arvind Subramanian to explain how calculations of under- and overvaluation are made. Mr. Subramanian is the author of a new book on China’s economic future, “Eclipse: Living in the Shadow of China’s Economic Dominance.” In recent Congressional testimony, he said China’s currency was about 15% undervalued, citing work by two colleagues at PIIE.
The U.S. Politics of Dealing With China
Next week is bash-China week in Washington. Some politicians are taking up two-by-fours; others are trying to dance around the issue.
China Daily 6/10/2011
PBOC deeply regrets US Senate's yuan bill
BEIJING - The People's Bank of China, the country's central bank, Tuesday expressed its "deep regret" about the US Senate's currency bill that pushed China to let the yuan appreciate further.
The central bank said the US Senate's bill may seriously affect China's currency reform, and could result in a trade war between the two economies.
The New York Times 5/10/2011
Op-Ed Columnist
Holding China to Account
By PAUL KRUGMAN
Legislation that would threaten sanctions against currency manipulators won’t solve our economic problems on its own, but it can contribute to a solution.
U.S. Senate Backs Tough China Trade Moves
The Senate voted to move forward with trade legislation that would impose tariffs on some Chinese goods to punish Beijing for keeping its currency artificially depressed.
People's Daily 5/10/2011
U.S. bill on China's currency does more harm than good: U.S. media
WASHINGTON, Oct. 3 (Xinhua) -- A bill proposed by the U.S. Senate to punish China's alleged currency manipulation will not help the U.S. create jobs, but will lead to negative results, the Washington Post said on Monday.
The Wall Street Journal 4/10/2011
Senate Moves to Punish China for Yuan's Low Value
WASHINGTON—The Senate voted Monday to move ahead with a bill that would punish China for keeping the value of its currency low, a measure that lets lawmakers deflect some of the blame for the sour U.S. economy on another country.
China Daily 4/10/2011
Pushing yuan bill risks trade war
BEIJING - With chronic financial ailments and persistent high unemployment driving thousands of protesters to the streets in New York and 50 other cities, some US lawmakers are, tediously, again trying to blame the Chinese currency instead of addressing the real reasons for the country's economic woes.
People's Daily 4/10/2011
China "firmly opposes" US Senate's yuan bill, FM spokesman
BEIJING, Oct. 4 (Xinhua) -- China here Tuesday expressed firm opposition on the U.S. Senate's bill on Chinese yuan after it voted to allow a debate on the bill on so-called "currency manipulation" by China.
Such a move "seriously violates rules of the World Trade Organization and obstructs China-US trade ties," Foreign Ministry spokesman Ma Zhaoxu said in a statement.
A foreign target is needed to shift domestic attention away from the frail US economy. The RMB definitely fills this need. However, a funny fact is that the RMB has risen by about 30 percent in five years while the US unemployment rate has increased from 7 percent to 14 percent.
No need to sweat over Senate yuan bill - Global Times
China Themes
Yuan Revaluation & Internationalisation
Graeme has been using ChinesePod since 2007
"I highly recommend ChinesePod, I haven't found any Online teaching programmes that come close."
Set in Zanzibar in 1910, it is the story of two people from different worlds falling in love. Susan immerses herself in Zanzibar. Asim falls in love with this woman from the nation that killed his wife. Susan is a spy. Asim is the chief advisor to the Sultan of Zanzibar. Germany and France are holding secret negotiations to form a Pan European alliance, which would isolate Britain and destroy her power. Susan and Asim are caught up in all this and their love is finally dashed on the cold, hard reality of international high politics.
Available on Amazon's Kindle $4.99 - Over 400 Pages
Chapter One
Zanzibar
'A maharaja’s ruby cast on a Persian carpet by the blackest of hands'
Their souls danced, honouring his promise.
The ancient dhow stirred in the soft morning breeze. Like a sleepy lion, it began to move through the water, snuffling about the other boats on the harbour; some scurrying, some at anchor, some darting before a brief gust of wind. The lateen sails a bustling panorama of blood-red and sun-bleached white.
Aft, the woman's eyes searched the skyline, drinking in the architecture of Stone Town, the heart of Zanzibar; its jagged, cluttered silhouette so familiar, so much a part of her soul.
Abruptly, her eyes ceased their restless searching, jagged by an invisible hook, transfixed by the grand buildings on the northern shore, Beit-al-Ajaib, the House of Wonders, Palace to the great Sultan of Zanzibar. The distinctive architecture captured in the tropical light: coconut white outlined by contrasting shadow plays of pepper black.
A smile, ever so slight, started to play on the edge of her mouth then disappeared. A memory that should have been fond instantly turned to sharp unbearable pain. Her eyes hardened and moved on.
Without warning the captain threw the rudder over. Stumbling, the woman barked her shin on a wooden box, a rough-hewn coffin. She recoiled, knocking over an untidy stack of cane baskets. Imprisoned in the baskets, rusty cockerels, their scruffy heads straining through the latticework, snapped at her, cried out to her; their raucous din overwhelming her, drowning her.
Dimly, through the fog of noise, the strident swearing of the sailors in Kiswahili seeped into her conscious. Understanding, she smiled mirthlessly.
The coffin had been carelessly stowed, a chore, rather than a labour of respect or love.
London 1910
“Hello, who are you? I am Oliver, is Edward at home?”
The words were spoken by a tall, impeccably dressed young man as he rushed into Edward’s flat shaking off surplus water and calling for whisky while shoving his umbrella into a stand. It was a blustery, grey, bitterly cold February afternoon in the heart of London. He brushed a curl of soft auburn hair from his forehead and smiled charmingly.
Susan laughed, her hazel eyes dancing with the exhilaration of the new. “Yes, he is having a bath. I think he is trying to get warm. I’m Susan, Susan Carey, his sister.”
“Ahhh yes, from Australia. How do you do?” said Sir Oliver, smiling broadly and offering his hand. He noticed the laughter in her eyes, and the depth, particularly the depth, intensified by jade flecks that made them striking and alluring. “So, you have arrived, good trip I trust.”
“I am very well thank you, and yes, it was a good trip,” replied Susan.
He laughed and glanced at the sitting room, “whisky?”
“Oh, I’m sorry, please come in…….. that was silly of me, after all, it is your flat.”
Oliver smiled and gestured for Susan to lead the way. He followed her into the room, and after helping himself to a generous portion of whisky, walked over to the fire.
Shortly after, Edward, wrapped in a huge ruby-coloured dressing gown and wiping soap from his ear strode into the room. He was of similar age to Oliver, late twenties, well built, if slightly podgy, with dark auburn hair and a full moustache. Susan looked up and smiled to herself, she could see now where he had picked up some of his new mannerisms.
“Thought I could hear voices. I see you two have met, no need for introductions then.”
As he was speaking, Edward walked to the side table and grabbed a whisky decanter by the neck. He glanced at Oliver who nodded. A long finger snaked into one of the tumblers followed by the distinctive clink of crystal. He swept the decanter off the table and carried it to where Oliver was sitting. After pouring the whisky, he sank into a lounge chair and sipped from his glass, enjoying the warm glow as it spread through his body.
Suddenly he sat up exclaiming, “Sorry sis, would you like something to drink?”
“Kind of you to remember, but no thank you, and yes, Oliver has already inquired.”
Edward nodded and sank back into his lounge chair.
They chatted, tentatively at first, getting to know one another. Edward had not seen Susan for two years and was unsure how his sister would take his new relationship. Oliver was intrigued by Susan. An attractive, self-assured young lady of high intelligence with a degree was a rare find. And, as fate would have it, she was also a trained and experienced teacher. He suggested a picnic at Oxford, which was met with ready acquiescence. Arrangements were made for the following Sunday.
“I’ll see if the Rolls is available,” mused Oliver. “Must ring father, haven’t spoken to him in ages.”
Oliver, Sir Oliver Marchmaine, was an unaffected young man of intense intelligence who saw life as a great adventure to be lived to the full. He was also unyieldingly loyal to his country, England, which is why he had joined Military Intelligence on leaving Oxford.
It was 1910 and Europe was stirring. It was a time full of interest, intrigue and danger. The European chessboard was becoming increasingly complex, the moves more subtle. A time when an unexpected move or feint could have profound consequences.
Regaining her balance, the woman’s eyes were drawn, hesitantly at first, resisting back to Beit-al-Ajaib. She wondered if it was still the same. Still the same centre of power and intrigue that had been so much a part of her life all those years before; that had defined her life.
She remembered those first few moments, remembered standing in the foyer of the palace, .………… remembered the breathtakingly beautiful Persian tapestry ........
The sea breeze stirred her clothes. She smiled a little sadly, and in her mind the tapestry gently swayed. Two small apparitions ran giggling up the stairs: two small exquisitely rich burkas disappearing along the first floor landing. Childish squeals of mischief and joy left in the air.......
“Move to seaward, you accused of Allah! Move!”
Her thoughts were clawed back to the dhow, the captain crashing the tiller over to avoid another boat on the crowded harbour. The woman instinctively ducked her head to avoid the heavy boom as it swung over her, the rusty cockerels squawked their raucous indignation, their heads straining through the latticework, relentless.
The collision avoided, the dhow continued on its way. The cacophony dying down to the occasional command by the captain or the cry of a seagull.
The woman's thoughts returned to Beit-al-Ajaib
…………. laughing and giggling, girls of seven or eight. A door on the first floor slammed and all sounds of them disappeared. Silence. The woman smiled. She could see herself, a young woman, dressed plainly, unselfconsciously, her sexuality tantalisingly just out of reach, hidden beneath the thin veil of her clothing. She remembered standing alone in the foyer, looking around, perplexed. Asim came through a door to the left of the tapestry.
“Salaam.”
The woman started and looked around. Then, realising, was cold again. Alone again. Alone, rocking to and fro to the rythm of the sea. Alone, beside a rough-hewn coffin.
Now Available on Amazon's Kindle $4.99 - Over 400 Pages
Graeme has been using ChinesePod since 2007
"I highly recommend ChinesePod, I haven't found any Online teaching programmes that come close."
