If this is the mentality of the others, but also when other countries are participating finance ministers and central bankers should have faith. They should be held for the G20 summit in November to pave the way, you can not waste time in endless quarrels. Still in the world we live in dangerous edge, admit it, we need to abandon the expectation of the kind of quick victory, but to convince myself that the global economy back to prosperity, G20 members need to be patient and long-term cooperation.

So, even if the exchange rate is a problem, all directed against the RMB will be unjust. Now “and reminders up” the chorus to try to convince the world of RMB, yuan to appreciate the economic recovery will be knocking on the door, and then correct the imbalance in world economic pattern, even if we do not doubt the political conspiracy behind this argument, can not but look at this carefully one-sided rhetoric and even arbitrary.

Imbalance in the world economy a long time, to convert the economic track, China and the U.S. of course, play a key role. Newspaper has used “The American people need to save the Chinese people to Consumer” published an editorial expressing the understanding of this imbalance and possible solutions. Correct the imbalance in the world economy, while the U.S. and China need to restructure the crux of the U.S. model by the world’s money to meet their own consumption, and the continued amplification of financial leverage, leading to the crisis. China will need to change the dependence on external demand, the formation of domestic demand-led economy, the consumer as the main engine driving the economy.

The editorial was published in October 2005, at which time it is also the first G20 finance ministers and central bank governors in China, when the procedure. At that time the exchange rate is one of the issues, but when the U.S. finance officials to understand, even if the yuan to appreciate, we can not address the U.S. trade deficit to talk about the exchange rate exchange rate, will not have a constructive outcome.

Since then, the RMB has appreciated more than 25%. China in June this year to restart the specialized temporary financial crisis due to the exchange rate mechanism (for example, turn in late 2008 in fact pegged to the dollar). There is no doubt that the Chinese understand that a more flexible exchange rate formation mechanism is conducive to China, the exchange rate itself in the market, help China to achieve structural transformation. However, the transformation of any economy is a long process, not overnight. United States hopes to revitalize the manufacturing, export and five-year doubling of the strategy, but can not significantly reduce its short-term external debt. Even very possible that the picture: once the financial system stable, the Americans will be happy to take the world back to the kind of buy in to the world’s consumption binge.

If the pessimistic view, this world is not far away from a currency war. Frankly, in the crisis, no country is willing to give up their interests and listen to the so-called market-oriented rhetoric. After the financial crisis, China had become the strongest appeal of free trade who, while in previous years has been that the United States as a missionary preaching the benefits of free trade for China. Therefore, no one willing to give up weapons of intervention, only difference is that, who is aggressor, who is the defender.

Cautious optimism is not without reason. September China is still the biggest buyers of U.S. Treasuries, even if the quantitative easing policy of the United States will inevitably lead to depreciation of the dollar, then the Chinese purchase of U.S. Treasury bonds will be greatly diminished. The United States announced the postponement of a week ago announced its monetary report to the G20 summit, before the whole world guessing whether the United States will be China as a currency manipulator. This shows how much the world has not given up looking for way out in the cooperation.

Of course, we can say that many of them helpless, and the selected components. However, the autonomy and cooperation have always been two sides of a coin. Even if the 20 finance ministers and central bankers can not reach agreement on specific issues, at least they can lay such a tone that is a common crisis, cooperation is still the most effective way, but we need patience to wait for a positive co-operation effects. The face and sustained upward pressure of hot money, China is still selected in the first time in 34 months after the first rate hike, is the expression of a responsible attitude. If China can not effectively control asset bubbles and inflation, China is a disaster, G20 not only other members of a bystander. The attempt to split the global economy into a number of island people, this is a vivid teaching cases.

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