“The appreciation of the renminbi can’t solve the trade deficit with China,” said China’s Foreign Ministry spokeswoman on September 16, at a press briefing, referring to the current U.S. pressure over China’s currency. “Pressure cannot solve the issue. Rather, it may have the opposite effect.”
The push-back was related to U.S. Treasury Secretary Timothy Geithner’s criticism of Beijing’s currency controls. Chinese authorities warned Thursday that continued pressure might worsen the situation. At the same time, the official Xinhua news agency published a range of articles with quotes from Chinese and Western scholars to defend its currency practice.
Source: Xinhua, September 16, 2010