China's trade surplus with the United States is the comprehensive reflection of multinational investment in China and adjusting the RMB exchange rate will have a very limited role in reducing the trade surplus, said Jiang Yaoping, vice minister of the Ministry of Commerce.
Jiang told this to China National Radio on Thursday after analyzing processing trade, the main reason for the trade imbalance.
Processing trade accounts for around 70 percent to 80 percent of the trade imbalance between China and the United States, Jiang said. And the processing trade surplus mainly comes from multinational enterprises. The proportion increased from 64 percent in 2000 to 84 percent in 2009.
From 2005 to 2010, China's processing trade surplus to the United States stood at around 100 billion U.S. dollars. Despite the RMB exchange rate adjustment that occurred between the years of 2005 and 2008, there was little change in the figure especially the volume of processing trade. That is to say, exchange rate has little effect on trade imbalance in terms of processing trade.
By Liang Jun, People's Daily Online
Jiang told this to China National Radio on Thursday after analyzing processing trade, the main reason for the trade imbalance.
Processing trade accounts for around 70 percent to 80 percent of the trade imbalance between China and the United States, Jiang said. And the processing trade surplus mainly comes from multinational enterprises. The proportion increased from 64 percent in 2000 to 84 percent in 2009.
From 2005 to 2010, China's processing trade surplus to the United States stood at around 100 billion U.S. dollars. Despite the RMB exchange rate adjustment that occurred between the years of 2005 and 2008, there was little change in the figure especially the volume of processing trade. That is to say, exchange rate has little effect on trade imbalance in terms of processing trade.
By Liang Jun, People's Daily Online
