China pledges 'gradual' currency reform

Updated: 2011-10-26 20:05


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BEIJING - China on Wednesday reaffirmed its commitment to gradual currency reform, stating that it is not justifiable to require China to boost the value of the yuan within a short period of time.

"We will continue to steadily promote currency reforms, but the process will be gradual. It is unjustifiable to require China to appreciate its currency substantially within a short time," Foreign Ministry spokeswoman Jiang Yu said at a daily press briefing.

Jiang's comments came after the US House of Representatives on Tuesday discussed a currency bill passed by the US Senate earlier this month, claiming that China holds down the value of yuan for the benefit of its export industry.

House of Representatives Speaker John Boehner called the legislation "dangerous" because of its potential to start a trade war.

Former US Treasury Secretary Henry Paulson said he believes the legislation is "not the right approach."

"We've noticed some persons of vision in the United States who are opposed to playing up the yuan exchange rate and imposing pressure on China. They believe the move is not the right approach to solving the US's domestic economic problems," Jiang said.

Jiang said China will not yield to outside pressure, citing comments by Western media.

The yuan has appreciated by more than 30 percent against the dollar since 2005, when China stopped pegging the yuan to the dollar and began reforming its exchange rate mechanism, Jiang said.

"China's policy is in accordance with the country's actual condition and works for the stability and development of the global economy," Jiang said.

Slowing China's economic growth would reduce global demand and harm the world economy, Jiang said.

Jiang said the US domestic problems cannot be solved by politicizing China-US trade and economic issues, calling for equal consultations to tackle problems and maintain the healthy and stable development of bilateral trade and economic relations.