Present at the 2005 Beijing Forum of Nobel laureates, famous economist and Nobel laureate American university professor Vernon L. Smith said in his speech delivered on the morning of May 31 that the Chinese and American economies are highly complementary, it is essential to continue to encourage the two countries to conduct economic and trade exchanges and further promote exchanges, rather than stop exchanges.

Concern with the question about the recent imposition of restrictions by the US and the EU on the exportation of China's textiles and the exchange rate of the Renminbi (RMB) is the topic often touched upon in the speeches made by world-famous economists gathered in Beijing in the past two days. On yesterday morning, US Columbia University Prof. Robert A. Mundell, the first guest who gave a speech at the 2005 Beijing Forum of Nobel laureates, called the "Father of Euro", unexpectedly abandoned his original speech title "Reason for a World Currency", and changed it into "A Great Debate on the Exchange Rate of RMB".

Mundell energetically favored maintenance of the stability of RMB exchange rate and listed 12 major harms of a revaluation of the Yuan exchange rate: Delaying the convertibility process of the RMB, causing a fall in foreign direct investment (FDI), leading to a sharp drop in the growth rate of the Chinese economy, worsening the issue concerning non-performing bank loans, hindering an improvement of the employment situation, etc. During the Asian financial crisis in 1997, the voice for a devaluation of the RMB was lingering on in the ears, at that time, China's insistence on keeping the stability of the RMB exchange rate finally proved to be correct. He said with emotion, "The question now seems to be a repeat of itself in that year".

Another guest who gave a speech today is a noted economist and professor of political economy of the US Harvard University Alberto Alesina. He said: America and Europe should cease regarding China as a trade protectionist country, instead they should look upon it as a cooperative partner. Setting restrictions on textiles is not in the interests of the US and the EU.

While being interviewed yesterday by PD reporter Yan Xiaoming, Vernon L. Smith said outspokenly: The restrictions set by the US and the EU on Chinese textiles and "many other frictions do not come up in the economic field, rather it is because some people like to meddle in trade". "The continuously increasing trade between China and the United States is beneficial to the two countries and other nations." EU's imposition of restrictions on Chinese textiles is a very bad policy, he said. In the United States, he is also always opposed to American restrictions on trade with China, "Regrettably, my advocacy invariably proves fail".

Vernon L. Smith reiterates today that globalization has brought the outsourcing and the outward shift of industries of some countries, the country concerned can thus save time, develop new technologies and maintain its competitiveness in market contests. We can greatly benefit from the gradual transition from old technologies to new technologies, we should approach the problem from a perspective of development and should not stem this tide of history.

Published on the second page of People's Daily June 1, this article is translated by People's Daily Online