There Is Truly No Need to Devalue the Renminbi

Abstract

According to conventional theory, the renminbi should devalue after the currency devaluations in Southeast Asia; otherwise our country's exports and international competitiveness will face considerable pressure. Some people maintain that failure to devalue the renminbi will be disadvantageous for China's 1998 export growth and for increasing international competitiveness. The devaluation of the renminbi or the increase of export tax rebates have thus become a necessity for export growth and even for economic growth in 1998.