The appreciation seems to be a gift to the United States from Hu Jintao ahead of his state visit scheduled for January 19. But the Ministry of Commerce in Beijing restrains enthusiasm: the deficit in the US-China trade balance remains high.

Beijing (AsiaNews / Agencies) - China will allow an up to 5% appreciation of the renminbi yuan reported the newspaper China Securities Journal today. The paper is not an official publication, but it is well versed in national economic policy.

The appreciation of the yuan is a major U.S. demand on China, which accuses Beijing of manipulating the value its currency to facilitate exports. For its part, Beijing has resisted raising the value to avoi higher labour costs that would lead to unemployment and social unrest. The "currency war of" has created tensions between the two superpowers.

Many analysts see China's move as a "gift” by Hu Jintao to Barack Obama ahead of his state visit to the U.S., scheduled for January 19 next.

However, Jiang Yaoping, Chinese vice-minister of Commerce, has warned against hoping that the appreciating the yuan will act as a panacea for the U.S. economy, and says it will have very mild impact on the trade imbalance between China and the U.S.

The U.S. trade deficit with China rose by 20% in the first 10 months of last year and could reach 270 billion dollars for 2010.

According to several experts and the World Bank itself, it should be appreciated the yuan by 33% (see 07/07/2009 G8, toxic securities, US and Chinese addictions).

• China
• USA
• yuan
• currency
• war
• appreciation
• exports
• economy
• trade
• deficit