Chinese bearing gifts

Just in time for the Hu-Bush summit, China's yuan jumps up.

Topics: China, Globalization, How the World Works, Chinese Economy,

On Monday, China’s top foreign-exchange official said in a published essay, “We will further improve the exchange rate mechanism, and incessantly make it more responsive to market supply and demand.”

On Tuesday, China’s premier, Hu Jintao, arrived in the United States, en route to a summit meeting with President Bush. One of the likely areas of their conversation: pressure on China to upwardly revalue the yuan. U.S. politicians and many economists have long argued that China’s exchange rate undervalues the yuan by 15 to 40 percent, making its products relatively cheap and contributing to the vast trade deficit that the United States runs with China.



On Wednesday, Bloomberg reported that China’s yuan experienced the biggest one-day rise in value since its initial revaluation last year.

Market forces? Or a nicely wrapped gift from China on the eve of the summit meeting? You be the judge, but far be it from us to suggest that China’s leaders would, gasp, intervene in the workings of their economy to score political favors with the United States.

Whatever the reason, anything that reduces tension between the United States and China is to be applauded. Let’s hear it for pseudo market forces!

Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

More Related Stories

Featured Slide Shows

  • Share on Twitter
  • Share on Facebook
  • 1 of 5
  • Close
  • Fullscreen
  • Thumbnails

    “One girl can be silenced, but a nation of girls telling their stories becomes free” slideshow

    A photo contest winner

    “One girl can be silenced, but a nation of girls telling their stories becomes free” slideshow

    A photo contest winner

    “One girl can be silenced, but a nation of girls telling their stories becomes free” slideshow

    Superhero Project

    “In life many people have two faces. You think you know someone, but they are not always what they seem. You can’t always trust people. My hero would be someone who is trustworthy, honest and always has their heart in the right place.” Ateya Grade 9 @ Mirman Hayati School (Herat, Afghanistan)

    “One girl can be silenced, but a nation of girls telling their stories becomes free” slideshow

    Superhero Project

    “I pray every night before I go to bed for a hero or an angel capable of helping defenseless children and bringing them happiness. I reach up into the sky hoping to touch a spirit who can make my wish come true.” Fatimah Grade 9 @ Majoba Hervey (Herat, Afghanistan)

  • Recent Slide Shows

Comments

0 Comments

Comment Preview

Your name will appear as username ( settings | log out )

You may use these HTML tags and attributes: <a href=""> <b> <em> <strong> <i> <blockquote>