China's Economy This Week: Exchange Rates, Growth, and Tariffs

Exchange Rate Reform: The Chinese central bank's declaration of further reform of the exchange rate has been welcomed by other countries and international organizations such as International Monetary Fund.

"Now China is reforming its RMB exchange rate regime and further improving its managed floating RMB exchange rate system," said Zhang Tao, International Department director with the central bank of China.

From July 2005, China has moved towards a managed floating exchange rate.



China "to Maintain Steady, Rapid Growth": China's economy is very likely to maintain steady and rapid growth in 2010, but it still faces a complex domestic and international situation, the People's Bank of China, China's central bank, said Wednesday.

It is imperative to continue support for economic restructuring and transformation of growth, the central bank said.

China and US Raise Anti-Dumping Duties: China said Monday it would impose anti-dumping duties ranging from 6.1 percent to 26 percent on certain iron or steel fasteners imported from the European Union beginning Tuesday.

The Ministry of Commerce said China's domestic industry of manufacturing certain iron or steel fasteners had suffered substantial damages caused by the EU's dumping of these products in Chinese domestic markets and the tariffs would last for a period of five years.

Meanwhile, the US Commerce Department Monday set final anti-dumping duties on imports of some $55.92 million woven electric blankets from China, a move might escalate trade disputes between the two countries.

The US International Trade Commission is scheduled to issue its final injury determination on or before 9 August.

Rising Industrial Profit & Revenue: Profits of China's industrial enterprises jumped 81.6 percent year-on-year for the first five months of 2010, China's National Bureau of Statistics said.

Profits of the industrial firms totaled 1.54 trillion yuan ($226.82 billion) from January to May, and revenues increased 38.2 percent to 25.35 trillion yuan. State-owned industrial firms accounted for more than one third of the total profit, reaching 524.38 billion yuan, 118.9 percent higher than the same period last year.

China is expected to receive 8 trillion yuan ($1.18 trillion) in financial revenue by the end of 2010, State broadcaster CCTV reported

If that happens, China will become the second-largest country in terms of income, trailing only the US.