China Economy Weekly: Beijing-ASEAN Trade; Rare Earths “Not Bargaining Instrument”; 12th Five-Year Plan

China and ASEAN Trade: Premier Wen Jiabao, speaking at the 13th China-ASEAN Summit in Hanoi, Vietnam has said China is determined to develop economic ties with the Association of Southeast Asian Nations (ASEAN).

Wen proposed that bilateral trade be increased to $500 billion by 2015, promising that China will make an effort to buy more from ASEAN countries. He also suggested setting up an Industrial Cooperation Mechanism within the China-ASEAN Free Trade Area framework to handle any problems and differences that arise.

Rare Earths “Not Bargaining Instrument”:  Beijing has said that it will not use rare earths as a diplomatic "bargaining tool", in response to challenges against its management of the vital metals.

Click to read more ...

China Economy Weekly: Currrency and Trade Arguments, Rare Earths and Japan, Banks in Taiwan

Currency Issues:  Chinese Premier Wen Jiabao has there was no basis for the drastic appreciation of the yuan, the Chinese currency. He added the issue was an economic one and must not be politicized.

Critics have claimed that China keeps the level of the yuan low to win competitive advantages in trade. However, Wen said, there was no connection.

The yuan appreciated 55.2% from January 1994 to July 2010. Meanwhile, major currencies of the world had depreciated, with the US dollar dropping 2.5%, the euro 3.8% and the Japanese yen 19.5%.

Click to read more ...