Yan feels that the market has lowered its expectations of a currency revaluation as the European debt crisis has hurt the region's economic growth and marred prospects for Chinese exporters. "The appreciation will not happen until there are clear signs that the European debt contagion has stopped spreading," Yan said.
According to Yan, even if the revaluation happens, the rise would be around two percentage points, the upper limit for the next 12 months.
Yao said the debt crisis is clouding the prospects for exports, as the economic outlook of the European market, the largest importer of Chinese goods, is still hazy.
The yuan has gained by over 14 percent so far this year against the euro, putting tremendous pressure on Chinese exporters and also affecting any adjustment of trade policies, he said.
Many Chinese economists are of the view that revaluation may get pushed into the next year.
"Revaluation is not in the interests of China or the United States, as this would hurt the economic growth of China and the whole world," said Li Jianwei, a senior researcher of the Development Research Center under the State Council.
"Trade protectionism measures against China have been rising, thereby putting more pressure on Chinese exporters," said Li Jian, a senior researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.
On Tuesday, the US Commerce Department said it was imposing anti-dumping and anti-subsidy duties of up to 194 and 46 percent on steel wire rod bars used for construction imported from China.
(Source: China Daily)
