On The RMB Exchange Rate Under WTO Rules

In recent years, along with China’s trade surplus has increased year by year, the sound of RMB exchange rate issue accusations can be heard without end. Since2003, some countries and organizations led by the USA will continue to put pressure on Chinese government to promote the appreciation of the RMB. After the reform of the RMB exchange rate issue in2005, there is a little quiet. However, with the global financial crisis in2008, the USA and some other countries on the issue of RMB exchange rate of the accused and intensified. In2010March, the United States President Obama proposed, China should be to " take the market as the exchange rate mechanism" wizard of further transition; in the same year, over100members of the USA Congress sent a letter to the Minister of the Ministry of Finance and the Ministry of Commerce, the Chinese government in the currency market intervention, resulting in the USA tates unemployment rate increase and decrease, market competitiveness the USA; therefore they suggested the government to take measures immediately to change the policy on China, or consider a lawsuit to WTO. In this case, discuss the issue of RMB exchange rate under the rule of WTO is imperative.The establishment of WTO on the RMB exchange rate issue of the jurisdiction of the analysis consists of three aspects. First of all, provisions of RMB dispute with WTO dispute settlement mechanism of the core-DSU. According to the provisions of DSU, only need to meet the following two requirements, can bring a lawsuit to a WTO:first, the scope of the jurisdiction agreement belongs to DSU; second, under the jurisdiction of the nature of the case of DSU. Secondly, GATT fifteenth provisions in some foreign affairs WTO need cooperation consultation and IMF, this does not mean that the RMB exchange rate against the dispute, only the IMF has substantive jurisdiction, while WTO can only follow IMF’s advice to make decisions. The fact is that IMF and WTO have jurisdiction overlap, WTO also has the substantive jurisdiction. Finally, the foreign exchange measures with trade related to the exercise of jurisdiction is the base of WTO. And the RMB exchange rate policy dispute is belongs to the foreign exchange measures with trade related. Therefore, WTO is undoubtedly has the jurisdiction of the RMB exchange rate of the dispute.The United States and other countries for the RMB exchange rate charges mainly concentrated in the "RMB exchange rate policy is formed under the provisions of the WTO agreement prohibited subsidies" this aspect.However, due to China’s export enterprises in foreign exchange settlement and sale of foreign exchange is accomplished by commercial banks rather than state-owned banks or government subsidies, therefore, the body doesn’t exist, so do not constitute " the government or public institutions, financial aid ". The Chinese export commodities are than American goods more competitive, the key factor is China’s low labor costs and is not an undervalued exchange rate; at the same time, with nearly to the gradual appreciation of the renminbi, China’s export enterprises are increasingly keen to bank for exchange rate risk protection, so that China’s exchange rate regime is not " vested interests of exporters ". At the same time, China’s system of foreign exchange not only applicable to the export enterprises. Whether it is business or personal, obtaining foreign exchange by various ways, export is the only one. So, the exchange rate policy in China has been applied to the entire Chinese economy, whether to invest or trade, are not confined to a specific enterprise or industry, so the RMB exchange rate policy is not in line with the " special requirements". Therefore, the RMB exchange rate system has not formed the WTO under the prohibited subsidies.The problem of RMB exchange rate charges, except that the RMB exchange rate policy constitutes the WTO prohibited subsidies, but also solve the agency a non-violation complaints to the WTO dispute in an attempt to; or that the RMB exchange rate policy violates the principle of national treatment, most-favored-nation treatment and quantitative restrictions; even some scholars put forward the policy of RMB exchange rate constitute the fourth section GATT fifteenth regulations " against IMF or WTO intention ". But whatever charges, through the concrete analysis cannot be based on.