Li Daokui, an adviser to the People’s Bank of China, spoke at a conference in Santiago, Chile today about U.S. pressure to allow the yuan to appreciate against the dollar.
“Many writers in the U.S. are saying that globalization is creating problems for the U.S. and that the U.S. has to rethink globalization. The exchange rate dispute is only the tip of the iceberg, and under the iceberg is the huge issue of globalization.
‘‘There is no way for the U.S. economy to go back to a manufacturing base. Manufacturing accounts for less than 10 percent of their employment. Their main employment is from service and construction. However, American politicians aren’t doing their homework. They easily blame China and the exchange rate for their unemployment problem. This is a challenge for us.
‘‘Even if the currency exchange rate appreciates rapidly it will not help the U.S. economy. It only means the U.S. will import from other countries more, and in a very short time the U.S. will not have the option from importing from other countries but from importing from China at higher prices, that will translate into inflation.’’