The United States President, Barack Obama, has demanded China revalue its currency upwards by 20 to 25 per cent or face a loss of patience by the international community.
His words at the Apec summit represent another increase in the rhetoric against China, which the US accuses of holding the renminbi artificially low to benefit exporters. The summit also promised deeds that could isolate China, as Obama won tentative agreement for a free trade bloc that would include the US, Canada, Mexico, Japan, Australia, New Zealand and other trans-Pacific countries.
The Obama administration has resisted domestic pressure to label China a "currency manipulator", a designation that could trigger sanctions and a wider trade war. But with all the possible Republican challengers attacking China and many Americans blaming Chinese competition in part for the sluggish US economy, Obama went further than before in addressing the issue of the yuan.
"Most economists estimate that the renminbi is devalued by 20 to 25 per cent," he said. "When it comes to their economic practices, there are a range of things that they have done that disadvantage not just the United States but a whole host of their trading partners and countries in the region."
According to the Chinese foreign ministry, the President, Hu Jintao, had said: "Even if the yuan rises substantially, it will not solve problems faced by the United States."
