China’s gradual shift from a relatively fixed arrangement to an exchange rate regime with greater flexibility in line with the needs of economic reform and opening up has won extensive support from the world community, and those criticisms wrongly accused this action as “manipulating exchange rate” will not be widely accepted. 18.
China’s trade balance should be assessed within a time framework of a number of years, not of a single year. And relevant statistics do not support the view that China gains trade advantages from the exchange rate. Japan has recorded large trade surplus continuously for many years, and yet the notion that Yen exchange rate has been manipulated is not accepted.