Does this sound like a country that will raise its exchange rate?

China’s foreign ministry spokesman Qin Gang said “A huge amount of facts has demonstrated the CNY exchange rate is not the main cause of the imbalance in Sino-US trade … Do not politicise the CNY exchange rate issue”

Vice foreign minister Cui Tiankai, said “The CNY is China's currency, so I don't think it is an issue that should be discussed internationally”. Zhang Tao, head of the central bank's international department, said “The Chinese government will decide on its foreign exchange rate policy according to both domestic and global economic situations”.

This does not sound like a government what will change it position on the currency in the near-term.. We should not expect much work being done on solving the global imbalance issue. Consequently, there is greater risk that capital controls and trade policy will drive macro decisions more so than capital flow and price adjustments.