From South China Morning Post, via Rand Corporation website:
US-China relations, and the respective national interests which underlie them, are generally harmonious. However, this is occasionally jarred by sharp discord. At present, the discord arises from legislation pending in the US Congress to put pressure on China to substantially raise the value of its “misaligned” yuan, relative to the US dollar.
Washington’s aim is to reduce the mainland’s large current account surplus with the US (nearly US$200 billion last year) which, it is contended, is appreciably affected by Beijing’s deliberate policy of undervaluing the yuan. [Full Text]
Charles Wolf is senior economic adviser and corporate fellow in international economics at the Rand Corporation.
