A sharp appreciation in the yuan would harm the world economy, and Beijing supported a stronger US dollar, an incoming commerce boss has said.
Chen Deming, who was recently appointed Vice-Minister of Commerce and is expected to become minister in March, said Beijing was not opposing a gradual adjustment of its currency but that it had to be done with caution.
'The Ministry of Commerce ... will not oppose yuan appreciation. What we oppose is a strengthening of the yuan that is too fast, abrupt and unreasonable,' Mr Chen said yesterday at the Third Sino-US Strategic Economic Dialogue, being held outside Beijing.
Overseas media have identified the ministry as one of the leading opponents within the cabinet of a stronger yuan, because of fears that it could hurt the mainland's export-driven growth and cut jobs.
Mr Chen said a rapid strengthening of the yuan would 'cause repercussions' around the world.
'If the yuan appreciates too fast, it would not correspond to China's economic conditions and is not something that China can afford,' he said.