posted on: Wednesday February 10, 2010
Kevin Cassidy ’11 / World Staff
Chinese officials said on Thursday, Feb. 4, that they will not revalue their currency despite pressure from United States President Barack Obama. Obama said China has kept their currency at an artificially low level to give China an unfair advantage in selling its exports.Obama said on Wednesday that “the United States must make sure our goods are not artificially inflated in price and their goods are not artificially deflated in price; that puts the U.S. at a huge competitive disadvantage, according to The New York Times. Economists say the Chinese currency, the renminbi, is undervalued by 25 to 40 percent compared to the dollar and other currencies. Ma Zhaoxu said, “judging from the international balance of payments and the currency market’s supply and demand, the value of the renminbi is getting to a reasonable and balanced level,” according to The New York Times.Tensions between the U.S. and China are growing because of currency issues, Internet censorship, arms sales to Taiwan, hacking attacks into American company computers, and the pending visit of the Dalai Lama to Washington. The Chinese economy continues to grow rapidly as the United States and rest of the world are in a recession. The official news agency of China said that Chinese economists are concerned that the value of the dollar will erode when the American government prints more dollars and issue more bonds after suffering a record budget deficit.