|
Is Beijing manipulates the yuan exchange rate? |
|
|
|
Washington has an opportunity to formally recognize China as a "currency manipulator". But few believe that it will benefit.
American trade unions and industry associations are pushing for the administration of Barack Obama to formally accuse China of manipulating the yuan exchange rate to promote exports. Opportunity for doing so would have the Treasury Department on Thursday, presenting to Congress a report on the exchange's main trading partners. - I would be shocked if the Obama administration decided on this step - but says Nicholas Lardy, an expert on China at the Institute of Peterson. This view is most analysts.
Missed opportunities Under U.S. law, the Treasury Department is required to take "in the fast-track" negotiating bilateral or IMF, or any country whose currency it considers to be formally controlled by the authorities. In 1992-1994, five have chosen to do in regard to China, but since none of U.S. trading partners was not considered a "currency manipulator". During the campaign Obama has criticized his predecessor George W. Bush for passivity. Given the fact that the yuan exchange rate has become the more important because of the increasingly widespread belief that the trade imbalance between China and the United States was one of the causes of the crisis. But in April, when the Obama administration could break with the policy of his predecessors (the report of the currencies of the Treasury Department prepares twice a year), did not benefit from this opportunity. Took the view that Beijing has taken measures to reduce trade imbalances (among others. Adopted a stimulus package, which was to boost domestic consumption and slowed the accumulation of foreign reserves), and confined itself to stating that "the yuan remains heavily undervalued." Commentators then explained that Washington had to maintain good relations with Beijing because of the need for international coordination of anti-crisis. Trade unionists Such a disappointing attitude of trade unionists who believe that the yuan is undervalued against the dollar by 20-40 percent. - Trade imbalance between China and the U.S. is so large that it can not be solved . We have to remove the basic problem, ie the rate - said Thea Lee, a specialist on economic policy in the AFL-CIO, the largest U.S. trade union headquarters. Speaking of referred to the recent decision by Washington to increase by 35 percentage points. duty on Chinese tires, which were seen as an attempt to union. - Without a doubt, the yuan is undervalued, but it is unlikely that Obama has accused China of manipulating - Lardy says. As indicated, the question of global financial imbalances, and so Beijing is doing what Washington wants. - The surplus in trade balance in China is decreasing, and consumption is growing at a rapid pace - he stresses.
|
