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【Beijing Forum 2010】Appreciation of RMB and Financial Crisis

NOV . 13 2010

Peking University, Nov. 6, 2010: On the afternoon of November 6, session 5 of the panel session of Global Imbalances and Solutions was held in the VIP room of Yingjie Overseas Exchange Center, Peking University. The session consisted of 3 brief presentations on issues about exchange rates and financial crisis, and a later discussion based on these topics. The three experts illustrated their opinions from different perspectives and put forward their suggestions respectively.


Prof. Xing Yuqing from National Graduate Institute for Policy Studies (GRIPS) made his speech on "Processing Trade, Exchange Rates and China's Bilateral Trade Balances". In his presentation, he pointed out that appreciating RMB would cut both China's processing imports and exports, thus the effect caused by the appreciation of RMB on relieving the current trade surplus would be limited.


During the speech of "Appreciating the RMB", Prof. Rod Tyers from the school of economics, the University of Western Australia, gave us a unique view on the exchange rates. Nominal and real exchange rates were defined and two main external pressures were analyzed. He indicated that an appreciation of RMB purely caused by external pressure without considering the fundamentals would do harm not only to China itself but also to the economies in other countries of the world.


"Financial Crisis and Fiscal Discipline" was the topic illustrated by Prof. Sun Lijian from school of economics, Fudan University. The presentation was begun with the recent euro-zone crisis. After introduction and analysis of related issues, Prof. Sun gave his conclusions on how to develop and perfect regional currency regime on the basis of Euro’s lessons.


After the presentations, scholars attending the forum spread out a heated discussion. The topics mentioned by Prof. Xing aroused many attendants' interests and some examples such as iPhone's manufacturing issue were discussed. The session ended in a favourable atmosphere. Other solutions and opinions to global imbalances are going to be discussed during the later sessions.


Extended Reading:

【Beijing Forum 2010】China and Global Imbalances


Reported by: Liu Yaqing
Edited by: Su Juan