From Bloomberg News (link)
China will keep the yuan’s value “basically stable” as the country continues to transform its foreign exchange rate regime and seeks to narrow its trade gap, President Hu Jintao said.
China is trying to narrow its trade surplus with the U.S. through government measures to increase domestic consumption, Hu said. Balancing the trade relationship is difficult because the U.S. no longer manufactures 90 percent of the Chinese products it imports, he said.
“China attaches great importance to the reform of the exchange rate, which will continue in accordance with its national needs,” Hu said in a speech at Boeing Co. in Everett, Washington on the second day of a visit to the U.S. “China does not seek a large trade surplus.”
Also see “China currency reforms too cautious, Treasury’s Adams says” by Robert Schroeder from the MarketWatch (link)
