As Pressure Builds, Will China Let Yuan Rise?
From a Q&A from Reuters:
WHY IS CRITICISM OF THE YUAN HEATING UP AGAIN?
In a nutshell, U.S. domestic politics.
With many U.S. lawmakers facing re-election in November and unemployment hovering just below 10 percent, pressure is building on President Barack Obama’s administration to push China to break the yuan’s nearly two-year-old peg to the dollar.
Although many economists believe yuan appreciation would do little to reduce the overall U.S. trade deficit, a vocal group of lawmakers in Washington says an undervalued currency subsidises Chinese exports at the expense of U.S. firms and jobs.