Ministry of Commerce: urging the US side to stop its countervailing investigation into the so-called undervalued RMB exchange rate

category:Finance
 Ministry of Commerce: urging the US side to stop its countervailing investigation into the so-called undervalued RMB exchange rate


China implements a managed floating exchange rate system based on market supply and demand, with reference to a basket of currencies. The market plays a decisive role in the formation of exchange rate. On the whole, the RMB exchange rate is at a reasonable equilibrium level and has not been underestimated. Since 2005, the RMB has appreciated by more than 17% against the US dollar. According to the data released by the bank for International Settlements, from the beginning of 2005 to may 2020, the nominal effective exchange rate of RMB has increased by 38% and the real effective exchange rate has increased by 49%. It is the most powerful currency in the G20 economies and one of the currencies with the largest appreciation rate in the world. The issue of exchange rate is beyond the jurisdiction of a member to conduct countervailing investigation in accordance with WTO rules. In February this year, the United States amended its regulations to conduct countervailing investigation on other countries exchange rates, which has been suspected of violating WTO rules and has been opposed by many parties. Even according to the U.S. regulations, there are a lot of errors in the content of the applicants appeal, which does not have the necessary anti subsidy elements such as financial assistance, benefit granting and specificity. China urges the US side to abide by existing international rules and stop its countervailing investigation into the so-called undervalued RMB exchange rate. Extended reading: 6.819 billion! Eight companies on the science and Technology Innovation Board will reduce their holdings of some small and medium-sized banks the day after the lifting of the ban. Interest rates are expected to be reduced after the peak period of issuing bonds. Ping An Property Insurance Company will purchase 26% of the equity of auto home by 17 billion yuan. Source: Beijing News Editor in charge: Zhong Qiming_ NF5619

China implements a managed floating exchange rate system based on market supply and demand, with reference to a basket of currencies. The market plays a decisive role in the formation of exchange rate. On the whole, the RMB exchange rate is at a reasonable equilibrium level and has not been underestimated. Since 2005, the RMB has appreciated by more than 17% against the US dollar. According to the data released by the bank for International Settlements, from the beginning of 2005 to may 2020, the nominal effective exchange rate of RMB has increased by 38% and the real effective exchange rate has increased by 49%. It is the most powerful currency in the G20 economies and one of the currencies with the largest appreciation rate in the world.

The issue of exchange rate is beyond the jurisdiction of a member to conduct countervailing investigation in accordance with WTO rules. In February this year, the United States amended its regulations to conduct countervailing investigation on other countries exchange rates, which has been suspected of violating WTO rules and has been opposed by many parties. Even according to the U.S. regulations, there are a lot of errors in the content of the applicants appeal, which does not have the necessary anti subsidy elements such as financial assistance, benefit granting and specificity. China urges the US side to abide by existing international rules and stop its countervailing investigation into the so-called undervalued RMB exchange rate.