The growth of the Chinese economy has contributed importantly to the recent world economic recovery. Any improper change in the RMB exchange rate policy may create new uncertainties to the world economic development. Therefore, we should be extremely cautious.
Recently, some foreign friends have showed their concerns about the potential overheating of the Chinese economy due to the expansion of money supply as a result of the rapid increase of foreign exchange. I would like to reassure these friends by recalling our experience during the Asian financial crisis.