Japan calls on China to raising the yuan

Source: PressTV
http://www.presstv.ir/detail.aspx?id=122332§ionid=3510213


Japan has called on China to let yuan strengthen amid accusations that Beijing keeps its currency artificially low to boost exports.

During a meeting with Chinese Premier Wen Jiabao in Beijing, Japanese Finance Minister Naoto Kan asked China to make a "wise decision" on its foreign exchange policy.

"The issue of the yuan, currencies and excess liquidity are related to each other. I told him that," Kan told reporters after the meeting.

But "I didn't say anything on what China should do or shouldn't do" about the yuan, he said.

Some of the Group of Seven industrialized states are ratcheting up pressure on the world's second economy to increase the value of the yuan in a bid to prevent what they allege is unfair export advantage.

"With regard to Japan-China trade, Japan has no major problems... but relations vary with other countries, so I told him that I expect China to make a wise decision as it has done so," he said.

In Washington, the Obama administration also made a same appeal, and there are moves to apply punitive measures against China to force it to increase the yuan's value. However, Naoto Kan described pressurizing China as counterproductive and said: "I'm also aware of the problems in the US Congress, but giving the perception of applying pressure isn't necessarily a good thing."

Treasury Secretary Timothy Geithner said that the United States wants China to quickly raise the value of the yuan.