American Machinist

Let's get China on a level playing field. (Government Matters).

THERE IS INCREASING CONCERN IN Congress regarding the Chinese Government's strategy of undervaluing its currency to garner exports and foreign investment. Last year, our bilateral trade deficit with China exceeded $100 billion. Indeed, China is accumulating foreign reserves at a rate of more than $6 billion per month. This uneven trading arrangement makes no sense, and it is directly related to a distortion in the value of the two nations' currencies.

China's strategy over the past decade has been to keep its currency artificially low, boosting its exports and holding down imports. Chinese intervention, through massive purchases of U.S. dollars, has kept the Chinese yuan from appreciating despite large trade surpluses and investment inflows. …

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