What Is Its Purpose？-＂Advancing RMB Exchange Rate Formation Mechanism＂

Spokesperson from People＇s Bank of China said on June 19th, ＂further advance the reform in RMB exchange rate formation mechanism, and strengthen the flexibilitv of RMB exchange rate.＂ This is the first time for China central bank give a clear attitude on reform in RMB exchange rate, which attracts great attention for global market. Does strengthening the flexibilityof RMB exchange ratemean that RMB will appreciate again？ Why the central bank announces the news at this moment？ How to choose the time for the reform in RMB exchange rate formation mechanism？     

Sino-US Trade Develops in Interdependency

China and the USA have decided to start up the third round of negotiation on the textile issue in the recent future. Maybe there is some active significance to start up this round of negotiation in such an occasion, for China‘s central bank has launched a reform on the RMB exchange rate in July and appreciated RMB for 2%. In the meantime, Huo Jianguo, head of the Department of Foreign Trade, Ministry of Commerce, revealed that the trade surplus with the USA is expected to exceed US$90 billion this year.……     

RMB Exchange Rate Reform：Past and future

With the deepening of China＇s financial reform, economic development and the enforcement of market roles, the RMB exchange rate needs to become more flexible and become a more sensitive reflection of the changes in market supply and demand. Under such circumstances, on July 21, the People＇s Bank of China announced that the previous system where China＇s RMB was pegged to the U.S. Dollar would be changed to include a basket of foreign currencies, shifting China＇s exchange rate system into a managed floating exchange rate regime based on market supply and demand.     

Sino-US Trade Develops in Interdependency

China and the USA have decided to start up the third round of negotiation on the textile issue in the recent future. Maybe there is some activesignificance to start up this round of negotiation in such an occasion, for China＇s central bank has launched a reform on the RMB exchange rate in July and appreciated RMB for 2%. In the meantime, Huo Jianguo, head of the Department of Foreign Trade, Ministry of Commerce, revealed that the trade surplus with the USA is expected to exceed US$90 billion this year. Wang Zihong, Head of Division of Economic Research, Institute of American Studies, Chinese Academy of Social Science, gave his answers on the question when interviewed by China＇s Foreign Trade.     

Differences Between Two Foreign Exchange Reforms

Different from that in July 12005, this reform in foreign exchange system happens with different economic environment, historical background and expected appreciation. Participants in the industry said frankly that China central bank started the reform again due to pressure from international markets, but it is not possible for RMB to appreciate greatly in a short term.     

The RMB Exchange Rate Keeps Increasing

In July 2005, the People's Bank of China officially announced that it would adopt a manageable floating exchange rate, adjusted according to a basket of currencies based on market supply and demand. On that day, the exchange rate of the RMB to the U.S. Dollar increased by 21 percent, and since then the RMB exchange rate has gradually turned to a more flexible exchange rate convention, rather than focusing on the Dollar only.     

Wu Jinglian:No Timetable for RMB Appreciation

Professor Wu Jinglian recalled the changes of Renminbi exchange rate mechanism and analyzed that before 1994, China had a multi-exchange rate, such as official price and adjustable price, sometimes leading a higher evaluation of Renminbi. Since 1994, China has had a strict control floating exchange rate. After the financial crisis in Southeast Asia, China‘s neighboring countries as well as the US appealed for non-depreciation of Renminbi.China accepted the appeal and kept a steady exchange rate of Renminbi,which contributed to the economic resurgence of Asia and world.……     

Wu Jinglian:No Timetable for RMB Appreciation

Professor Wu Jinglian recalled the changes of Renminbi exchange rate mechanism and analyzed that before 1994, China had a multi-exchange rate, such as official price and adjustable price, sometimes leading a higher evaluation of Renminbi. Since 1994, China has had a strict control floating exchange rate. After the financial crisis in Southeast Asia, China's neighboring countries as well as the US appealed for non-depreciation of Renminbi.China accepted the appeal and kept a steady exchange rate of Renminbi,which contributed to the economic resurgence of Asia and world.     

The RMB Exchange Rate Keeps increasing

In July 2005,the People's Bank of China of- ficially announced that it would adopt a man- ageable floating exchange rate,adjusted ac- cording to a basket of currencies based on market supply and demand.On that day,the exchange rate of the RMB to the U.S.Dollar increased by 21 percent,and since then the RMB exchange rate has gradually turned to a more flexible ex- change rate convention,rather than focusing on     

China＇s Capital Market： Could it be the Best in the World？

＂The share-list of China＇s stock market this year is bound to reach 3000 points.＂ ＂Before or after the Beijing Olympic Games, another upward fluctuation of the stock market is sure to emerge in China.＂ ＂The latest statistics show that the total market value of the Shanghai and Shenzhen stock market have surpassed the mark of 10 trillion RMB, surpassing 50% of GDP.＂ ＂Having successfully completed the reform of China＇s stock market, China has achieved a full revolution.＂     

China's Capital Market: Could It Be the Best in the World?

"The share-list of China's stock market this year is bound to reach 3000 points," "Before or after the Beijing Olympic Games, another upward fluctuation of the stock market is sure to emerge in China." "The latest statistics show that the total market value of the Shanghai and Shenzhen stock market have surpassed the mark of 10 trillion RMB, surpassing 50% of GDP." "Having successfully completed the reform of China's stock market China has achieved a full revolution."     

YUAN POLICY,Good for China,Bad for the World？

As we can learn from this world financial crisis,it seems to be an acceptable fact that China can not be regarded as a heavy victim.On the contrary,in the opinion of many foreigners,China is greatly benefiting from this financial crisis by holding its exchange rate fixed as a heavy victim. On the contrary, in the opinion of many foreigners, China is greatly benefiting from this financial crisis by holding its exchange rate fixed against the dollar, which obviously fuels its export an important engine for economic growth. Statistics show that China has maintained strong economic growth in the first three quarters of 2009,     

HSBC Suggests Renminbi Should Be Stable

Hong Kong and Shanghai Banking Corporation (HSBC) just released a 48-pages report to suggest Renminbi should be stable. Someone said that if RMB is not going to appreciate to a large scale, Chinese economy will be overheated continuously. Under the system of current rate, in order to keep the exchange rate at the existing level, Chinese central bank must intervene the foreign exchange market, put in a large amount of Renminbi, thus bring pressure of inflation and overheating of economy.     

China Customs Tariff Revenue Exceeds RMB460 Billion in the First Three Seasons

The General Administration of Customs of the People's Republic of China recently promulgates that the national customs levied tariff revenue and import linkage tax RMB461.945 billion in the first three seasons, increasing by 19.17%; among which the tariff is RMB4.1 billion; the import linkage tax is RMB357.     

China''s Environmental Protection Industry:A Promising Future Ahead——Exclusive Interview with Mr.Luo Jianhua,Secretary-general of CESIA

On June 15, 2009, at the 2009 China Beijing International Energy Saving and Environmental Protection High-level Forum -- EMC and Energy Conservation Service Industry, there were 12 enterprises par-ticipating in the contract signing ceremony for EMC programs. All the contracted energy conservation companies are member units of Beijing Commission for Promotion of Energy Saving and Environmental Protection （Beijing CPPESEP）. And the total amount of cooperation intention is up to tens of millions RMB. It seemed that the EMC mechanism oriented by the market and serving the energy conservation was thriving again. So what is the EMC？ How is it developed and applied in China right now？ And what difficulties does the EMC mechanism confront in China？ Let＇s see.     

China Customs Tariff Revenue Exceeds RMB460 Bilion in the First Three Seasons

The General Administration of Customs of the People＇s Republic of China recently promulgates that the national customs levied tariff revenue and import linkage tax RMB461.945 billion in the first three seasons, increasing by 19.17%; among which the tariff is RMB4,1 billion; the import linkage tax is RMB357.114 billion; the net revenue is RMB74.302 billion more than the previous year.     

Looking back and looking to the Future——Interview with Mr．Wan Jifei，Chairman of CCPIT＆CCOIC

2007 was a year of enormous change in China’s economy, especially in foreign trade. Many changes were made regard- ing reform and opening-up,as well as the overall economic develop- ment strategy,and further adjust- ments were also made in the eco- nomic and foreign trade policies. However,last year the interna- tional economy and trade industry developed in an unpredictable way. While China’s foreign trade has forged ahead,internal and external pressures were felt,including ap- preciation of the RMB and other     

Rising Interest of AFRB Could Relieve Pressure of Renminbi Appreciation

Analysts think AFRB's increase of interest has a great positive influence on China, because the main impact on the stability of RMB's exchange rate comes from the idle fund that is betting on the appreciation of RMB.The Open Market Committee of American Federal Reserve Board (AFRB) held two day's formal meeting for the first time in 2005, they unanimously agreed to increase the interest rate again, the interest rate of federal fund is increased from 2.25% to 2.5%; the discount rate is raised to 3.5%, which accords with the market expectancy. At present, China's one-year deposit rate is 2.25%, which is 0.25% lower than US's interest rate.     

Officials and Experts Optimistic on China's Economic Prospect

Assurance from officials Will the RMB appreciate or fall against the dollar?. Is China's record deficit too heavy a burden on the government? Zhou Xi-aochuan, Governor of the People's Bank of China, and Xie Xuren, Minister of Finance Ministry, have answered these questions when meeting the press in Beijing during the "two sessions".When asked about the RMB's appreciation against the dol-lar, Zhou said what China would like to see is "basically a stable" RMB, implying that there will be no drastic fluctuations of RMB exchange rates.     

Beijing Using Foreign Capital

The centre of politics, culture and international exchange in China, Beijing is also an important centre of the economy in the country. Since the reform and opening up, the economy of Beijing has developed rapidly and in a healthy way. It ranked 2nd place in comprehensive economic strength, next to Shanghai, in the appraisal of the Top 50 Cities in Comprehensive Strength in China. Bcijing is one of China's industrial bases, with 6,000 industrial enterprises of different kinds. The electronics,