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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.

BEIJING, Jan. 29 (Xinhua) -- China's auto sales would not rise as steeply as that in 2009, but would continue to see double-digit growth boosted by government stimulus measures, an official with the Ministry of Commerce said on Friday.Chang Xiaocun, who headed the market construction department of the ministry said at a news conference that research had shown that after a nation's per capital GDP surpasses 3,000 U.S. dollars, it would see brisk auto sales as more families could afford to buy cars.China met that criteria in 2008, he said.

CHENGDU, Jan. 18 (Xinhua) -- Still recovering from the pain left by a catastrophic earthquake in 2008, people in southwest China's Sichuan Province now act swiftly to support quake-hit Haiti through donation and a candlelight vigil.About 160,000 yuan (23,400 U.S. dollars) have been donated throughout the province since Sichuan's charity groups called for emergent aid to Haiti that was ravaged by a powerful quake a week ago.  Students of the Xiang'e Primary School pray as they hold candles for Haiti children who are suffering from earthquake in Dujiangyan, southwest China's Sichuan Province, which was hit by strong earthquake last May, on Jan. 18, 2010. "I have been hoping to do something for the Haiti people as soon as I learned that the country was hit by a quake," said a 76-year-old lady in Chengdu, capital of Sichuan.The lady, surnamed Liu, donated 1,000 yuan (147 U.S. dollars), her monthly retirement pension, at the Chengdu Charity Federation on Monday."I hope all citizens in the city can do their bit to help the Haiti people," she added.More than 50,000 people were believed to have died in the 7.3-magnitude quake that struck the island country on Jan. 12. Haitian officials said it was the strongest earthquake to hit the country in more than 200 years.Eight Chinese peacekeeping police officers also died in the quake."We received the first sum of money donated for Haiti on Jan. 14, and since then, more and more citizens have come here for donations," said Zeng Zhiqian, of the Chengdu Charity Federation."Starting today, we prolong our working time by two hours. We will also work on weekends to receive donations," he said.In Dujiangyan City, about 200 students and teachers at the Xiang'e Primary School held a candlelight vigil Monday evening, praying for the children in Haiti.Sichuan is now recovering from the 8.0-magnitude quake on May 12, 2008, which left about 87,000 people dead or missing."The Haiti quake reminds me of the Wenchuan (in Sichuan) quake. We Sichuan people are beneficiaries of domestic and international assistance. Now it's time for us to give a hand to Haiti people," said Tan Yunjun, a staff of the Dongfang Turbine Co. Ltd. in Sichuan's Deyang City.The company suffered severe losses in the Wenchuan quake, with building collapses and huge casualties.The company held a donation ceremony on Monday, collecting more than 80,000 yuan from the staff in less than one hour. Zhang Zhiying, general manager of the company, said the company would contribute another 50,000 yuan."The Chinese nation has a fine tradition of being indebted to others, and every staff in our company is willing to show their love for Haiti people," said staff Chen Xin.

BEIJING, Feb. 9 (Xinhua) -- China's police departments will launch a 30-day campaign starting Wednesday to hunt down fugitives who are suspected of having committed a crime known as fake invoice fraud.The campaign will have a code name known as "spring thunder", said Liu Jinguo, Vice Minister of Public Security.While addressing a teleconference Monday, the vice minister said: "As the Spring Festival is drawing near, the demand for fake invoices remains strong. Perpetrators will get on the move."Statistics show that the police across the country uncovered 237 cases involving fake invoice fraud and detained 234 suspects in January. They also destroyed eight large sites making and selling fake invoices, and confiscated more than 12 million fake invoices in the past month.Fake invoice vendors are common in Chinese cities, where they offer receipts used for tax purposes. Such invoices could cause huge losses in tax revenues and could feed illegal activities, such as smuggling, money laundering and corruption.The Spring Festival, or the New Year's Day on the Chinese lunar calendar, will fall Sunday. It is an occasion for reunions of relatives and friends, completed with much fun and plenty of eatings. Spring Festival is the most important event for people of Chinese origin.