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There are weeks away from the U.S. mid-term election time, the face of high unemployment, politicians will naturally promise to voters, as they increase employment. So they began to harden in China.
U.S. Treasury secretary last Thursday on the Senate Banking Committee said the government has to consider all the tools and methods to stimulate the Chinese government to speed up the pace of yuan appreciation. We can interpret this: We are in the edge of trade sanctions.
Even Geithner said so much, not let the senators satisfied. New York Democratic Senator Charles Schumer angrily said that trade with China is "weakening the United States Julio Jones Authentic Jersey , reducing American living standards and weaken the United States as a world power's strength."
Senate Banking Committee, Republican heavyweight, Alabama Senator Cherbet (Richard Shelby) demanded: "Why are there departments to protect the Chinese, do not want to call it a currency manipulator?"
Indeed, China may artificially underestimate the value of its currency. If China allowed the yuan to appreciate Deion Sanders Authentic Jersey , the relative price of Chinese exports even more expensive for the United States, U.S. exports become relatively cheaper. This may help reduce the trade imbalance.
Although the June issue of China announced reform of RMB exchange rate, but since then the yuan against the dollar only rose 1%. U.S. trade imbalance with China is increasing, in the first half, China's trade surplus reached 119 billion U.S. dollars the United States Qadree Ollison Jersey , which makes the balance of trade between the two countries this year will exceed last year's 227 billion U.S. dollars.
First, China may be counter. Should know that China is the biggest U.S. bond investors, holders of U.S. debt capacity more than 843 url] , the price is high - need to buy a huge amount of dollars in China. Undervalued currency to the dollar more expensive, why do people think that they would never bored with it?