The American Chamber of Commerce in China (AmCham) on Friday urged the US government to stop putting pressure on China to revalue the renminbi.
The US-China trade balance issue could not be addressed by forcing Chinese currency revaluation, said a White Paper presented by AmCham to the 2007 China Trends Conference in Shanghai.
China's steady reform of its banking and overall financial infrastructure is considered key to the full integration of China's currency globally, said the paper.
The full global integration of China's financial sector and the enforcement of protection of intellectual property rights are also believed to be crucial factors contributing to the long-term and sustainable growth of the two countries' economies, the chamber noted.
The chamber believes that the large and growing US trade deficit with China should not serve as the definite measure of US-China trade.
AmCham members agreed that effective implementation of existing laws and regulations, and the skillful and targeted use of WTO dispute mechanism are the best means of dealing with shortcomings in the commercial relationship between the two countries.
The paper pointed to the important progress China has made in reforming its capital market.
It noted that the deepening of the reforms to further open the capital market in China would allow for the removal of capital controls and enable China to adopt a market-driven, flexible rate regime.
China's American Choir
Somehow, I am not at all surprised that the American Chamber of Commerce in China does not want to push China on the issue of currency revaluation as its members are among those who benefit the most from an undervalued yuan. While this point is obvious, it is worth noting for posterity in the days before the world gets hit with the China bill. It's also good to read for clues on how American financial firms are still keen on breaking into the China market in an act of "financial deepening." From the China Daily:
