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BEIJING, Feb. 19 (Xinhua) -- U.S. political rhetoric has recently been obsessed with the exchange rate of the renminbi. President Barack Obama has indicated on several occasions that he would take a tougher stance on this issue in order to address trade imbalances between his country and China.But does the renminbi hold the key to this issue? What are the backstage calculations behind those demands from Washington?RENMINBI A WRONG TARGETWhile addressing Democratic senators early this month, Obama said the issue of renminbi exchange rate must be addressed to ensure that American products will not be put into a huge competitive disadvantage given the fact that China is going to be one of America's biggest markets.In an interview with Businessweek on Feb. 10, Obama said he and Chinese leaders are going to have some "very serious negotiations" on the renminbi issue.Supporters of Obama include economists such as Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics. Those experts say China's huge trade surplus is a result of an undervalued renminbi. Appreciation of the Chinese currency, in their view, would re-balance China's international trade.However, the validity of such argument is questionable.The Japanese yen, for example, has been appreciated enormously against the U.S. dollar over the past 40 years. Yet Japan's trade surplus with the United States has been continuously on the increase over the same period.The case with the Japanese yen has clearly demonstrated that international payment is not necessarily entirely linked to currency exchange rates. International trade balance is rather determined by international division of labor and product competitiveness.Stephen King, chief economist of the HSBC bank, said it is unreasonable to simply attribute China's big trade surplus to an undervalued currency. China's high savings rate is a more important factor in this respect, he told Xinhua.Nobel Prize laureate Andrew Michael Spence shared King's argument."Reducing the surplus in China involves deep structural change, much as reducing the U.S. deficits does. China's high savings are embedded in the structure of the economy," Spence wrote in Jan. 21's Financial Times.Without structural change, an appreciation of the renminbi might well lead to continued high savings and slow economic growth in China, rather than to a reduction of China's trade surplus, he wrote.International Monetary Fund (IMF) chief economist Olivier Blanchard believes that renminbi appreciation is not a solution for the U.S. economy.According to an IMF model, the American GDP will grow by 1 percent when the renminbi appreciates by 20 percent and other major Asian currencies also appreciate by a similar margin, he told Xinhua."This would be good news for U.S. growth. But this is clearly not enough, by itself to sustain growth in the United States," said Blanchard.World Bank chief economist and Vice President Justin Yifu Lin also said that the appreciation of the renminbi will not solve the problem of trade imbalance between China and the United States. On the contrary, such a move might damage both economies.CHINA BASHING NOT HELPFULObama has frequently attacked China over the renminbi issue in recent months. His motives are thought-provoking.In an article titled "Obama bashes China in order to win midterm elections," Japanese weekly Choice pointed out that after one year in office, the U.S. president now faces a sharp drop in approval ratings, a double-digit unemployment ratio and the loss of Democratic "supermajority" in the Senate.Trying to win the midterm elections under such circumstances, Obama had moved toward a "China-bashing" policy since the end of last year, including imposing high tariffs on Chinese products and pressuring China on renminbi exchange rate.But the truth is China has become the largest victim of U.S. trade protectionism since the outbreak of the global financial crisis.According to statistics released by the United States International Trade Commission, there were roughly 50 trade remedy cases filed by the United States between January and November 2009, half of which targeted China.At the end of last year, Chinese Premier Wen Jiabao said in an exclusive interview with Xinhua that some foreign countries kept asking China to appreciate its currency while using various protectionist measures against China. Their real motive was to contain China's growth, he said.Wen reiterated that China will never yield to external pressures on the exchange rate issue.In essence, a country's exchange rate policy is a matter of sovereignty.During a meeting with a visiting delegation of U.S. Chamber of Commerce in May 2005, Wen made it clear that the reform of renminbi's exchange rate was a sovereign right of China, and that every country had the right to choose a foreign exchange system compatible to its own national conditions and a reasonable exchange rate level.Wen said China would obey the rules of a market economy, but would never give in under foreign pressure.Any foreign pressure or attempt to manipulate the issue via news media represented a politicization of economic issues, which was unhelpful, the premier added.George Gilder, founder of Discovery Institute, said that it is neither realistic nor helpful for the United States to raise the renminbi exchange rate issue again with China.Pieter Bottelier, former chief of the World Bank's Resident Mission in China, told Xinhua that China and the United States share broad common interests.A prosperous, stable and strong China is in the interests of the United States and vice versa, said Bottelier. The two nations need to settle their differences through various dialogue mechanisms, he added.In recent years, China has been making efforts to balance international. The renminbi has been steadily appreciated against the U.S. dollar and the euro.Between July 2005, when China began its renminbi exchange rate reform, and the end of 2009, the value of the renminbi has appreciated by 21.21 percent against the U.S. dollar and up by 2.21 percent against the euro.Under such circumstances, China has been the fastest growing export market for the United States in recent years.In 2009, U.S. exports to China amounted to 77.4 billion dollars, accounting for an increasingly larger share in the country's total exports.During the same period, U.S. trade deficits with China dropped by 16 percent year-on-year.In the Asian financial crisis of late 1990s, China won worldwide applause for keeping a stable exchange rate of the renminbi.In the ongoing global financial crisis, while the world's major currencies all lost value, China has remained committed to a responsible renminbi exchange rate policy and has made significant contributions to the recovery of the global economy.Many experts familiar to China-U.S. trade pointed out that in order to achieve trade balance, the United States should take positive and concrete steps, such as increasing hi-tech exports to China and allowing Chinese firms to acquire shares in U.S. financial and technology sectors.

CAIRO, March 3 (Xinhua) -- The commander-in-chief of Egyptian armed forces met Wednesday in Cairo with visiting Deputy Chief of General Staff of the Chinese People's Liberation Army Ma Xiaotian, pledging to strengthen bilateral military ties.Mohammed Hussein Tantawi, who is also Egyptian Minister of Defense, said during the meeting that the two countries have seen close cooperation in military, political and economic fields in recent years, which serves both countries' interests as well as regional and world peace and stability."The Egyptian military attaches great importance to the friendly relationship with the Chinese counterpart and expects more efforts to be made to further improve pragmatic cooperation," Tantawi said.For his part, Ma said the two sides enjoy long-term friendly relationship, and fruitful cooperation has been accomplished in the fields of high-level visits and professional personnel training."The Chinese side is willing to make joint efforts with the Egyptian side to consolidate the traditional friendship and push forward the in-depth cooperation between the two militaries," Ma said.Ma arrived in Cairo on Tuesday. During his visit, he also presided over the first session of the Chinese-Egyptian Defense Cooperation Commission.

BEIJING, Feb. 2 (Xinhua) -- China has dispatched inspectors to 16 provinces to urge local authorities to thoroughly investigate cases concerning food safety, the government's latest move against a string of reportedly resurfacing melamine-tainted milk products after a nationwide crackdown in 2008.Any law-breaking concerning food safety will be severely dealt with, an official with the National Food Safety Rectification Office led by Health Minister Chen Zhu said here Tuesday.The unnamed official said the office recently dispatched eight teams of inspectors. The official did not give details on the total number of inspectors involved or their identities.Milk powder laced with melamine that should have been destroyed has been used, local authorities discovered.Media reports said melamine-tainted dairy products have resurfaced in several Chinese provinces.Melamine is an industrial compound which can give a false positive on protein tests and cause kidney stones. Melamine-contaminated milk products left at least six children dead and 300,000 sickened in 2008."These cases reveal that the toxic milk powder recalled in 2008 was not completely destroyed and is now illegally reused for new products," the official said.In December 2009, three people from the Shanghai Panda Dairy Company were prosecuted on suspicion of producing and selling melamine-tainted milk powder. Local police said all the company's products had been recalled and that there was no harm to consumers.Another three people from the Shaanxi Jinqiao Dairy Co. Ltd. in northwest Shaanxi Province had also been detained by police over suspected tainted milk powder sales before its products reached retail stores.Food safety issues have became particularly sensitive in China after the 2008 milk scandal. The government has intensified supervision of food safety with new laws and regulations, including the Food Safety Law that took effect on June 1, 2009. Nationwide checks of food safety have also been increased.The official said food safety was a global issue, one that existed in both developing and developed countries.Improving food safety standards is a long-term tough task for China, the official added.

NANNING, March 15 (Xinhua) -- Twelve of the 14 cities in southern China's Guangxi Zhuang Autonomous Region are affected by drought, the regional flood-control and drought relief authority announced Monday.The drought had affected 522,967 hectares of farm land by March 11 and 1.76 million people were denied easy access to drinking water, 232,100 people more than seven days earlier, said a statement from the authority.About 870,900 head of livestock were also suffering a shortage of drinking water.Local meteorologists forecast that in most of Guangxi, temperatures would be 0.1 to 1 degree Celsius higher than average in March and April, and precipitation would be 20 percent less.The authority predicted the drought would worsen, as the peak season for water consumption in spring ploughing would begin soon.

HANOI, Feb. 4 (Xinhua) -- Vietnamese National Assembly Chairman Nguyen Phu Trong said here on Thursday that Vietnam vows to advance friendly ties with China.Trong made the remarks when meeting with Han Qide, vice chairman of China's National People's Congress Standing Committee, and president of the Chinese People's Association for Peace and Disarmament.Trong said Vietnamese and Chinese high-level officials have been committed to developing bilateral comprehensive strategic cooperative partnership.Bilateral relations are developing in a fine manner, with expanding economic and trade relations and active people-to-people exchanges, said Trong.Trong said Vietnam would spare no effort to advance bilateral friendly relations.Han said in the meeting that China and Vietnam have been expanding cooperation in economic and trade, culture, science, education and other fields in recent years.The two countries have seen strengthened cooperation and coordination in international and regional issues, said Han.Han said China and Vietnam have decided to develop comprehensive strategic cooperative partnership, which injected new impetus to bilateral relations.Han said this year marks the 60th anniversary of the establishment of diplomatic ties between the two countries and the Year of Friendship. China would like to take this opportunity to enrich bilateral relations and push forward the bilateral ties to a new level.