China and the U.S. Economy

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In The Media

China and the U.S. Economy

Despite Treasury Tim Geitner's recent comments that China is manipulating its currency, it is difficult to assess China's monetary policies because its economy is in such flux.

By Dr. Albert Keidel

Published on Jan 24, 2009

Source: Washington Journal

Secretary of the Treasury Tim Geitner recently stated that China has "manipulated" its currency to gain an upper hand in its trade relations with the United States. Albert Keidel appeared on C-SPAN's Washington Journal to examine that claim and offer his thoughts on what the Obama administration's policy towards China will look like.

In six months, the Treasury Department of Treasury will report which countries are unfairly manipulating their currencies to achieve trade benefits. Keidel explained that it is difficult to assess whether China is manipulating the yuan since its economy is in such flux right now. He argued, furthermore, that it is difficult, if not impossible, to identify what the "proper" dollar-yuan exchange rate should be; he noted that while the yuan has indeed appreciated with respect to the dollar, it has depreciated compared to the euro.

Keidel expressed confidence that the Obama administration will continue the Strategic Economic Dialogue that Hank Paulson stewarded under the Bush administration, arguing that that dialogue has opened up high-level exchanges between American personnel and their appropriate counterparts in Beijing.

About the Author

Dr. Albert Keidel

Former Senior Associate, China Program

Keidel served as acting director and deputy director for the Office of East Asian Nations at the U.S. Department of the Treasury. Before joining Treasury in 2001, he covered economic trends, system reforms, poverty, and country risk as a senior economist in the World Bank office in Beijing.

Recent Work

Article
As China's Exports Drop, Can Domestic Demand Drive Growth?
- Dr. Albert Keidel
Article
China’s Fourth Quarter 2008 Statistical Record
- Dr. Albert Keidel

Economy Security Military Foreign Policy North America United States East Asia China

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

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