Will China allow Yuan to appreciate
Posted by admin . Published on 21 March 2010, Received
US is worried about the massive increase in the trade deficit, for which it is blaming China. US says that the unduly low pegging of the Yuan currency by the Chinese has lead to massive advantage for Chinese exports which needs to be corrected by China.
It is therefore asking the Chinese government to devalue the Chinese Currency Yuan to bring down the trade deficit. China is slowly readying itself for a first round of correction for the currency which may only be a token reduction.
Given the history, it is not fair to expect China to not succumb to the US pressure.
