Comprehensive report by International Finance News reporter Su Manyi

A year ago, few people outside Asia talked about the RMB issue, but in 2003 it became a hot topic of debate around the world. Amid the international clamor for RMB appreciation, Stephen Roach, chief economist of Morgan Stanley's Global Economic Analysis Department, made it clear that this was a "serious mistake."

Faced with global economic imbalances, this influential man on Wall Street said: "China should no longer be a scapegoat. The urgent solution is that the dollar must depreciate."

Luo Luo Qi pointed out that changing the RMB exchange rate mechanism will shake up the supply chain that has been integrated into the global production model, and will also bring adverse factors to Japan, the United States, the European Union, etc. who are actively entering China. By pressuring China to change its exchange rate policy, industrialized countries risk wasting their own cost-saving efforts. China does not compete on the basis of an undervalued currency, but mainly on labor costs, technology, quality control, infrastructure and a firm commitment to reform. He said that China's RMB exchange rate is a concrete manifestation of its competitiveness.

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Stephen Roach is currently Morgan Stanley’s chief economist and director of global economic analysis. He is responsible for leading the company’s forecasts and analysis of the U.S. economy, as well as managing Morgan Stanley. Danley Dean Witter works in economic forecasting and analysis in New York, London, Paris, Tokyo and Hong Kong. Roach holds a PhD from New York University and a BA from the University of Wisconsin. Roach joined Morgan Stanley in 1982. Prior to that, he served as vice president of economic analysis at Morgan Guaran-ty Trust Company and worked for six years in the research department of the Federal Reserve in Washington, DC, where he was responsible for supervising Federal Reserve officials. Estimates of GDP.