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mediazioni e arbitrati, risoluzione alternativa delle controversie e servizi di mediazione e arbitrato
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» 04/22/2010
CHINA – UNITED STATES – JAPAN
IMF joins the world to ask Beijing to revalue its currency
In its World Economic Outlook, the International Monetary Fund says only a new Chinese monetary policy can guarantee a global economic recovery. It also warns Japan to invest more. The United States prepares to hit China’s aluminium export to send Beijing a strong signal.

Beijing (AsiaNews/Agencies) – China should allow market forces to set the value of the yuan, whereas Japan should enhance its economic stimulus measures, said the International Monetary Fund (IMF) in its semi-annual World Economic Outlook, which was released on Wednesday. In the meantime, the US Commerce Department said that it was close to deciding what to do in relation to China’s currency, a major thorn in US-China relations.

For the IMF, Japan’s “tentative” economic recovery is an exception in a region that is leading the global rebound, fuelled by consumer spending and investment in China and India.

For the Washington-based fund, policy makers in several countries should embrace stronger exchange rates. “Currencies of a number of emerging Asian economies remain undervalued, substantially in the case of the renminbi,” the IMF report said.

The Group of 20 emerging and developed nations, whose finance chiefs meet tomorrow in Washington, should also discuss coordinating policies to strengthen the global recovery, the IMF said. Equally, it’s “essential” for China to respond positively to the demands of the rest of the world for a new currency policy.

Currently, the yuan is pegged at 6.83 against the US dollar, and this since July 2008. For Western economists and analysts, such a fixed rate has allowed China to remain highly competitive.

It has also allowed China to accumulate huge holdings in US securities that have been steadily growing in value; any change in the exchange rate, as envisaged by US president Barack Obama, could reduce their value by as much as a third.

However, the situation has also led to a long-standing row between Beijing and Washington. Although both sides can harness good arguments, a solution still seems far away. In any event, the United States remains China’s main export market, whilst Washington needs Beijing’s support at the United Nations to stop Iran.

In the meantime, the US Commerce Department could decide this week whether to launch a groundbreaking investigation into charges that China is subsidising exports of moulded aluminium extrusions, a material that is used in the automobile and construction industries, by undervaluing its currency.

US producers filed a petition recently calling for an investigation into whether Beijing subsidises exports of aluminium extrusions by undervaluing the yuan. If the department finds in favour of the petitioners, it could impose countervailing duties to offset losses by US companies.


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See also
10/09/2007 CHINA – EUROPEAN UNION
Europe complains about low yuan
11/12/2009 CHINA – UNITED STATES
Hu and Obama in the war over the yuan
10/05/2009 CHINA
Beijing wants IMF voting quotas to reflect contributions
12/09/2008 ASIA
Economic crisis: US, China and the coming monetary storm
by Maurizio d'Orlando
10/10/2012 CHINA - JAPAN - IMF
Islands not only reason for China IMF snub

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Pope: I am with the persecuted Christians of Mosul and the Middle East "May the God of peace inspire in all a genuine desire for dialogue and reconciliation. Violence is never defeated with violence. Violence is defeated with peace." At the Sunday Angelus Francis comments on the parable of the wheat and the weeds. God is "patient" He knows "the same weeds in the end, may become good wheat". But "at the time of the harvest, that is, of judgment, the reapers will execute the order of the master separating the weeds to be burned".
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Card Zen: Religious freedom and civil liberties are united, for China and Hong Kong
by Bernardo CervelleraA wide ranging conversation with the bishop emeritus of Hong Kong: the courage of Msgr. Ma Daqin, who sent a message to Pope Francis; underground Catholics are also prepared to be arrested; suspicions about Beijing’s sincerity towards possible dialogue with the Holy See. And in Hong Kong, the march for a referendum on democracy; support for "Occupy Central"; the fear of the government and arrests. Card. Zen reaffirms that religious freedom and civil liberties go hand in hand.

Dossier
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