 Anchor: China says the recent depreciation of the yuan against the US dollar is normal, and the country won't rely on a weaker yuan to boost exports. CRI's Zheng Chenguang takes a closer look.
Reporter: Since its peg to the dollar ended in July 2005, the Chinese yuan has increased 20 percent in value against the US currency.
China's Commerce Minister Chen Deming says the recent slight devaluation of the yuan is a result of a stronger dollar.
"The recent small fluctuation of the yuan against the dollar is quite normal. I would call it the U.S. dollar strengthening, rather than the yuan depreciating,"
Chen Deming says China's monetary policy has remained the same and any change in the exchange rate is fueled by market forces.
Wang Guogang, a senior researcher with the Chinese Academy of Social Sciences, echoed Chen's words. He says a sinking world economy and a strong appreciation of the yuan in the first half of this year are two main reasons behind the yuan's sudden drop.
"There's a financial crisis going on in the United States, and some U.S. investors have to draw back their investments in China so as put out the fire in their backyard. They are willing to sell the Chinese yuan even at a relatively low price. Besides, the yuan appreciated too fast, especially in the first half of the year. When there's a surge, there will always be a slump."
Chinese economic experts also point out that the major problem for China's export industry is shrinking overseas demand. China needs to optimize its export structure by increasing its share of high-tech products.
Zheng Chenguang, CRI News.
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