China Needs Stronger Yuan to Help Expand Domestic Demand: Times

China should maintain the steady strengthening of the yuan in the longer term to help expand domestic demand and serve its new development model with the domestic market as the mainstay, according to a commentary in the Securities Times. A moderate appreciation of the yuan can reduce the cost of imported intermediate products and lower prices of final products sold in China, thereby increasing consumers' purchasing power, the newspaper said. A stronger yuan may also encourage enterprises to produce higher-quality final products and upgrade domestic consumption, the newspaper said. Japan and Germany witnessed such development during which their appreciating currencies helped reduce the dependence on the international markets, eliminate outmoded production capacities and optimize economic structures, the newspaper added.