Home » Chinas Currency Policy: An Analysis of the Economic Issues by Wayne M Morrison
Chinas Currency Policy: An Analysis of the Economic Issues Wayne M Morrison

Chinas Currency Policy: An Analysis of the Economic Issues

Wayne M Morrison

Published December 27th 2012
ISBN : 9781481849173
Paperback
48 pages
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 About the Book 

Chinas policy of intervening in currency markets to limit or halt the appreciation of its currency, the renminbi (RMB), against the U.S. dollar and other currencies has become an issue of concern for many in Congress. Critics charge that ChinasMoreChinas policy of intervening in currency markets to limit or halt the appreciation of its currency, the renminbi (RMB), against the U.S. dollar and other currencies has become an issue of concern for many in Congress. Critics charge that Chinas currency policy is intended to make its exports significantly less expensive, and its imports more expensive, than would occur if the RMB were a freely-traded currency. They contend that the RMB is significantly undervalued against the dollar and that this has been a major contributor to the large annual U.S. trade deficits with China and the loss of U.S. jobs in recent years. Several bills have been introduced the 112th Congress that seek to address the effects of undervalued currencies (which are largely aimed at China), including H.R. 639, S. 328, S. 1130, S. 1267, and S. 1619 (which passed the Senate on October 11, 2011). On the other hand, some analysts contend that Chinas industrial policies, its failure to adequately protect U.S. intellectual property rights, and its unbalanced economic growth model, pose more serious challenges to U.S. economic interests than Chinas currency policy. Some U.S. business groups have also expressed concern that U.S. currency legislation could aggravate U.S.- China commercial ties.