Growing U.S. dependence on China in such grave matters as pressuring North Korea to return to disarmament negotiations and stabilizing the world economy may make the Obama administration hesitant to confront America’s largest creditor over what some U.S. lawmakers believe to be an undervalued yuan. From the Taipei Times:
As the US economy slumps, lawmakers have renewed a push to punish China for what they see as currency manipulation that costs US jobs. Their prospects appear bleak at a time when the US is seeking Chinese help in confronting crises around the world.
In the aftermath of North Korean nuclear and missile tests, the administration of US President Barack Obama wants China, a veto-holding permanent member of the UN Security Council, to use its leverage as North Korea’s only major ally to push Pyongyang to return to nuclear disarmament negotiations.
[…]Another reason the Obama administration probably will oppose currency legislation is China’s role as the biggest holder of US government debt, Republican Representative Ed Royce said.
