In case David Brooks or Thomas Friedman try to tell us that Chinese currency manipulation does not exist.  Prime Minister Wen Jiabao said yesterday:

“China will continue to perfect the renminbi exchange rate regime in a gradual, proactive and manageable manner, give a further role to the market in determining the exchange rate, and will bring flexibility to the renminbi with a view to enabling capital account convertibility,” Mr. Wen was quoted as saying at a European Union-China business forum.

This is an admission that the market does not determine China's exchange rates.  The government does.

We'll see what Mr. Wen's statement - "give a further role to the markets" - means in the next few weeks. 

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