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Understanding that the renminbi became undervalued because of expansionary monetary policy in the United States in 2003 helps explain why Chinese economists and political leaders have a differerent interpretation of the currency issue than Americans.
China will likely expand access to cheap credit even as it revalues its currency in the coming months, counterbalancing the effects of revaluation and further exacerbating China's economic imbalances.
China’s quick recovery from the Great Recession has raised questions about its role in the world economy and its relationship with the United States, where economic growth has been slow to return.
China’s relationship with its neighbors has been damaged by Beijing’s response to the detainment of the captain of a Chinese fishing boat that collided with Japanese coast guard vessels.
Political concerns will dominate Beijing's economic decision-making as Chinese leaders seek a gradual adjustment that will balance competing constituencies.
Pending U.S. Congressional legislation that targets China’s currency policies is evidence of a broader trend toward protectionism, as countries seek to bolster domestic employment while avoiding the consequences of trade retaliation.
Rather than talking about building mutual trust, China should take concrete steps in order to inaugurate a positive cycle of reciprocal cooperation in U.S.-China relations.
If countries with large trade surpluses weaken their currency, countries with large trade deficits are likely to retaliate through reciprocal currency manipulation or trade tariffs.
International businesses, including U.S. businesses, are increasingly recognizing the opportunities Hong Kong offers as a base for providing financial and professional services to mainland China.
Beijing's efforts to control inflation and prevent overheating have been largely successful. With growth likely moderating to 7–8 percent in the years ahead, officials are now turning their attention to domestic rebalancing.