China to Consider Neighbors in Yuan Move

China to Consider Neighbors in Yuan Move
China to Consider Neighbors in Yuan Move




BANDAR SERI BEGAWAN, April 21 — China will consider the effects on its economy as well as those of neighboring countries before changing its fixed currency policy, Foreign Minister Li Zhaoxing told Reuters on Thursday.

Asked about U.S. pressure for China to float the yuan and the possibility of Beijing changing its policy, Li said any decision would be based ''on the actual conditions of China and the interests of both the Chinese and our neighbors, even the whole world's interests.''
The yuan, also known as the renminbi, is pegged at about 8.28 to the dollar, a policy that has come under increasing criticism from the United States and others who say its makes Chinese exports unfairly cheap.
Beijing has said that while it is committed to eventually allowing the currency to float freely, it will do so only gradually and after tackling other problems in the economy such as a sickly banking system.
It has previously said it would consider foreign interests when taking a decision on the currency.
Li's comments came just days after President Bush said that China appeared to be considering an interim step toward floating the yuan and that Washington was urging Beijing to take that step as soon as possible.
U.S. Treasury Secretary John Snow also pressured China to make the yuan more flexible, saying it was a top priority for the administration's international economic policy.


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