Well, as might have been imagined, the Chinese administration are giving the US senate a very politite 'no'. Politics, as I understood it was the art of the achieveable. Making demands on others that they aren't going to comply with may only expose your own vulnerability. With Iraq already giving a major dent in global confidence that the US can deliver on what it promises, I can't help feeling we could have lived without this latest embarassing incident. Elitist as it sounds I have the feeling that it is far more productive to address these problems patiently behind the closed door meeting of the G7.
China rejected on Tuesday a detailed prescription from Washington for a quick move to a more flexible exchange rate system, beginning with a 10 per cent revaluation of the renminbi.
A foreign ministry spokesman, in response to questions about a Financial Times report that the US Treasury had made a revaluation demand via unofficial envoys, said many US visitors had come to China recently carrying “such messages” about revaluation.
But he repeated Beijing's view that it would not bow to foreign pressure on the issue.
“China will not do this when internal conditions are not ripe, no matter how great the external pressure is,” said the spokesman, Kong Quan.
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