The US trade deficit with China results from a myriad of factors, and pressuring China to revalue its currency won't solve the issue, a leading US economist said today.
Joseph E. Stiglitz, Columbia University professor and Nobel laureate, said there are many other ways for the US to address its trade imbalance with China, one of which is loosening restrictions on hi-tech exports to China.
He pointed out that although it is necessary for China to improve the exchange rate of the yuan, easing foreign investment and adjusting fiscal policy are equally important.
He was speaking at the annual China Development Forum in Beijing, which was founded in 2000 by the Development Research Center of China's State Council, the Cabinet.
US senators have recently ratcheted up pressure on China to raise the value of the yuan against the dollar, but Beijing has rejected the demand.
