News / Asia

    China Central Bank Says Priority is Keeping Prices Stable

    People's Bank of China Deputy Governor Yi Gang is seen at the IMF/World Bank Group meeting in Tokyo October 14, 2012.  People's Bank of China Deputy Governor Yi Gang is seen at the IMF/World Bank Group meeting in Tokyo October 14, 2012.
    x
    People's Bank of China Deputy Governor Yi Gang is seen at the IMF/World Bank Group meeting in Tokyo October 14, 2012.
    People's Bank of China Deputy Governor Yi Gang is seen at the IMF/World Bank Group meeting in Tokyo October 14, 2012.
    TOKYO – China's central bankers on Sunday allowed some public and direct insight into their thinking. A top official of the People's Bank of China delivered remarks to those who had been attending a joint meeting of the International Monetary Fund and World Bank in Tokyo.

    The deputy governor of the People's Bank of China, Yi Gang, says the priority for monetary authorities in Beijing is on stable prices and they want to pursue a sustainable path of economic development.

    China's next stimulus package - focused on expanding the country's transportation infrastructure, will be an appropriate one, according to Yi.

    "When I say appropriate in terms of size that is large enough to stabilize the growth but not too large to cause some further negative impact or negative problem in the future."

    China's economy has slowed for the past six consecutive quarters. But it still has cash reserves estimated to be around 40 percent of its gross domestic product and with official foreign currency reserves around three-and-a-quarter trillion dollars.

    Yi, speaking for his boss, characterized the Chinese currency as having reached its equilibrium, and said the central bank had not intervened in the foreign exchange market in the past year.

    The United States has long urged Beijing to lift exchange markets controls, contending the Chinese currency is undervalued and that gives China's exports an unfair price advantage overseas.

    Yi said the central bank will continue to diversify its reserve holdings as China is already sitting on enough cash, and "in terms of reserves, it's not the more the better."

    The central bank number two told the audience of banking officials that he does not promote the internationalization of the renminbi (the official name for the yuan) and moves in that direction are totally market-driven.

    Responding to a question about what authorities will do amid speculation China faces a bubble with soaring urban real estate prices, especially in Beijing and Shanghai, Yi indicated he and fellow central bankers are keeping a close watch.

    "Right now whether it's a correct level or it's a bubble is not known. But if it continues to go up the probability is higher and higher it will become a bubble. Right? So, that we certainly don't want to have a bubble so we want to stabilize the real estate prices."

    Yi was a stand-in at the Tokyo meetings for the People's Bank of China governor Zhou Xiachuan and delivered a speech on his behalf.

    Zhou, along with China's finance minister, broke with their country's own protocol and did not send top relevant officials to the annual event.

    Chinese officials have made no secret this was meant to express Beijing's displeasure over a recently re-ignited territorial dispute with Japan.

    Steve Herman

    A veteran journalist, Steve Herman is VOA's Southeast Asia Bureau Chief and Correspondent, based in Bangkok.

    You May Like

    UN Observes International Day of Peacekeepers

    The U.N. honors 3,400 peacekeepers killed since first mission in 1948

    Video Rolling Thunder Tribute to US Military Turns into a Trump Rally

    Half-million motorcycles are expected to rumble Sunday afternoon from Pentagon to Vietnam War Memorial for rally in event group calls Ride for Freedom

    The Struggle With Painkillers: Treating Pain Without Feeding Addiction

    'Wonder drug' pain medications have turned out to be major problem: not only do they run high risk of addicting the user, but they can actually make patients' chronic pain worse, US CDC says

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Chinese-Americans Heart Trump, Bucking National Trendi
    X
    May 27, 2016 5:57 AM
    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Chinese-Americans Heart Trump, Bucking National Trend

    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Reactions to Trump's Success Polarized Abroad

    What seemed impossible less than a year ago is now almost a certainty. New York real estate mogul Donald Trump has won the number of delegates needed to secure the Republican presidential nomination. The prospect has sparked as much controversy abroad as it has in the United States. Zlatica Hoke has more.
    Video

    Video Drawings by Children in Hiroshima Show Hope and Peace

    On Friday, President Barack Obama will visit Hiroshima, Japan, the first American president to do so while in office. In August 1945, the United States dropped an atomic bomb on the city to force Japan's surrender in World War II. Although their city lay in ruins, some Hiroshima schoolchildren drew pictures of hope and peace. The former students and their drawings are now part of a documentary called “Pictures from a Hiroshima Schoolyard.” VOA's Deborah Block has the story.
    Video

    Video Vietnamese Rapper Performs for Obama

    A prominent young Vietnamese artist told President Obama said she faced roadblocks as a woman rapper, and asked the president about government support for the arts. He asked her to rap, and he even offered to provide a base beat for her. Watch what happened.
    Video

    Video Roots Run Deep for Tunisia's Dwindling Jewish Community

    This week, hundreds of Jewish pilgrims are defying terrorist threats to celebrate an ancient religious festival on the Tunisian island of Djerba. The festivities cast a spotlight on North Africa's once-vibrant Jewish population that has all but died out in recent decades. Despite rising threats of militant Islam and the country's battered economy, one of the Arab world's last Jewish communities is staying put and nurturing a new generation. VOA’s Lisa Bryant reports.
    Video

    Video Meet Your New Co-Worker: The Robot

    Increasing numbers of robots are joining the workforce, as companies scale back and more processes become automated. The latest robots are flexible and collaborative, built to work alongside humans as opposed to replacing them. VOA’s Tina Trinh looks at the next generation of automated employees helping out their human colleagues.
    Video

    Video Wheelchair Technology in Tune With Times

    Technologies for the disabled, including wheelchair technology, are advancing just as quickly as everything else in the digital age. Two new advances in wheelchairs offer improved control and a more comfortable fit. VOA's George Putic reports.
    Video

    Video Baby Boxes Offer Safe Haven for Unwanted Children

    No one knows exactly how many babies are abandoned worldwide each year. The statistic is a difficult one to determine because it is illegal in most places. Therefore unwanted babies are often hidden and left to die. But as Erika Celeste reports from Woodburn, Indiana, a new program hopes to make surrendering infants safer for everyone.
    Video

    Video California Celebration Showcases Local Wines, Balloons

    Communities in the U.S. often hold festivals to show what makes them special. In California, for example, farmers near Fresno celebrate their figs and those around Gilmore showcase their garlic. Mike O'Sullivan reports that the wine-producing region of Temecula offers local vintages in an annual festival where rides on hot-air balloons add to the excitement.
    Video

    Video US Elementary School Offers Living Science Lessons

    Zero is not a good score on a test at school. But Discovery Elementary is proud of its “net zero” rating. Net zero describes a building in which the amount of energy provided by on-site renewable sources equals the amount of energy the building uses. As Faiza Elmasry tells us, the innovative features in the building turn the school into a teaching tool, where kids can't help but learn about science and sustainability. Faith Lapidus narrates.

    Special Report

    Adrift The Invisible African Diaspora