Economy
Multinationals contribute most to trade surplus
(Xinhua)
Updated: 2010-04-07 10:10
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BEIJING - Chinese economic and financial experts said here on Tuesday that multinational companies (MNCs) involved in the processing trade in 皇冠体育app have contributed most to 皇冠体育app's trade surplus.
Zhang Yansheng, director of the Institute for International Economic Research under the National Development and Reform Commission, told a press conference on 皇冠体育app's economic and financial reforms Tuesday that two production and trade systems have emerged in 皇冠体育app since 皇冠体育app's reform and opening up in 1978.
Many MNCs believe the appreciation of the Renminbi (RMB) will have little effect on them because of their low-cost labor force and supportive production processes in 皇冠体育app, said Zhang, adding that the MNC's costs in 皇冠体育app account for a small part of overall costs.
The RMB's appreciation will have a great impact on 皇冠体育app's small and medium-sized enterprises which have no involvement in the global manufacturing chain and limited potential to upgrade industrial processes to transform.
A large appreciation of the RMB might go beyond what these Chinese enterprises can sustain, he said.
Improving the RMB exchange rate regime is more important than focusing on the exchange rate itself, Ba said.
"We should let various factors affecting the RMB exchange rate play their full role in the market," he said.
