Calls by India and Brazil for appreciation of Chinese currency smacks of protectionism borne out of concerns over growing trade imbalances with China rather than the two countries backing US demand for Yuan revaluation, Chinese analysts said.
Reacting to the comments by Reserve Bank Governor D Subba Rao and his Brazilian counterpart Henrique Meirelles, official media here quoted local analysts as saying that the remarks indicate their protectionist policies rather than their support for the US on this issue.
"The trade imbalance between China and India indeed exists. Although the Yuan appreciation might benefit their Indian economy, it would not be a win-win solution for the issue as rise of Yuan would hut China's exports," Fu Xiaopiang, a researcher at the Institute of South and Southeast Asian Studies of the China Institute of Contemporary International relations was quoted as saying.
"Some Latin American countries have strengthened anti dumping measures towards China in recent years in a bid to protect their national trade and further strengthen the competitiveness of their domestic products," Jiang Shixue, Vice Director at the Institute of Latin American Studies in the Chinese Academy of Social Sciences, told Global Times.
The trade gap between India and China increased to over $16 billion in favour of China last year raising concerns in India. Meirelles also said yesterday at a Senate hearing that it was absolutely critical that China rise the value of its currency to bring about equilibrium in global economy.
United States has been accusing China of profiting out of under valuation of Yuan which traded about 6.80 to a dollar.
The issue figured prominently in the recent meeting between Chinese President Hu Jintao and his US counterpart Barrack Obama during which Hu reportedly asserted that China would allow Yuan to appreciate at its own pace and time.
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