From the New York Times (link):
If the United States persuades China to push up the value of its currency, there could be some unintended consequences: imports of $300 shoes and computer-controlled machine tools from China instead of T-shirts and plastic toys.
In the short run, a stronger currency may encourage China to buy more General Electric turbines and Microsoft computer programs from the United States. That is why officials in Washington have pushed China for several years to allow the currency, the yuan, to rise sharply in value. The topic is likely to be near the top of the agenda when President Hu Jintao of China meets President Bush in Washington on Thursday.
