China’s Currency: An Analysis of the Economic Issues

China’s Currency: An Analysis of the Economic Issues PDF

Author:

Publisher: DIANE Publishing

Published: 2007

Total Pages: 37

ISBN-13: 1437941885

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Many Members of Congress charge that China's policy of accumulating foreign reserves (especially U.S. dollars) to influence the value of its currency constitutes a form of currency manipulation intended to make its exports cheaper and imports into China more expensive than they would be under free market conditions. They further contend that this policy has caused a surge in the U.S. trade deficit with China and has been a major factor in the loss of U.S. manufacturing jobs. Although China made modest reforms to its currency policy in 2005, resulting in a modest appreciation of its currency, many Members contend the reforms have not gone far enough and have warned of potential legislative action. This report summarizes the main findings in CRS Report RL32165, China's Currency: Economic Issues and Options for U.S. Trade Policy, by Wayne M. Morrison and Marc Labonte, and will be updated as events warrant.

China's Currency Policy: an Analysis of the Economic Issues

China's Currency Policy: an Analysis of the Economic Issues PDF

Author: Wayne Morrison

Publisher: CreateSpace

Published: 2012-12-27

Total Pages: 48

ISBN-13: 9781481849173

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China's policy of intervening in currency markets to limit or halt the appreciation of its currency, the renminbi (RMB), against the U.S. dollar and other currencies has become an issue of concern for many in Congress. Critics charge that China's currency policy is intended to make its exports significantly less expensive, and its imports more expensive, than would occur if the RMB were a freely-traded currency. They contend that the RMB is significantly undervalued against the dollar and that this has been a major contributor to the large annual U.S. trade deficits with China and the loss of U.S. jobs in recent years. Several bills have been introduced the 112th Congress that seek to address the effects of undervalued currencies (which are largely aimed at China), including H.R. 639, S. 328, S. 1130, S. 1267, and S. 1619 (which passed the Senate on October 11, 2011). On the other hand, some analysts contend that China's industrial policies, its failure to adequately protect U.S. intellectual property rights, and its unbalanced economic growth model, pose more serious challenges to U.S. economic interests than China's currency policy. Some U.S. business groups have also expressed concern that U.S. currency legislation could aggravate U.S.- China commercial ties.

China's Currency: A Summary of the Economic Issues

China's Currency: A Summary of the Economic Issues PDF

Author:

Publisher:

Published: 2007

Total Pages: 0

ISBN-13:

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Many Members of Congress charge that China's policy of accumulating foreign reserves (especially U.S. dollars) to influence the value of its currency constitutes a form of currency manipulation intended to make its exports cheaper and imports into China more expensive than they would be under free market conditions. They further contend that this policy has caused a surge in the U.S. trade deficit with China and has been a major factor in the loss of U.S. manufacturing jobs. Although China made modest reforms to its currency policy in 2005, resulting in a modest appreciation of its currency, many Members contend the reforms have not gone far enough and have warned of potential legislative action. This report summarizes the main findings in CRS Report RL32165, China's Currency: Economic Issues and Options for U.S. Trade Policy, by Wayne M. Morrison and Marc Labonte, and will be updated as events warrant.

China's Currency

China's Currency PDF

Author: Wayne M. Morrison

Publisher:

Published: 2010

Total Pages:

ISBN-13:

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Report that provides an overview of the economic issues surrounding the current debate over China's currency policy. It identifies the economic costs and benefits of China's currency policy for both China and the United States, and possible implications if China were to allow its currency to significantly appreciate or to float freely. It also examines proposed legislation in the 111th Congress that seek to address China's currency policy.

China's Currency

China's Currency PDF

Author: Wayne M Morrison

Publisher:

Published: 2006

Total Pages:

ISBN-13:

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This report explores various aspects of the Chinese economy, including specific policies that some Members of Congress consider a form of currency manipulation, the U.S.-China economic relationship, and the state of the Chinese economy with respect to the current global economic crisis.

China's Currency and Economic Issues

China's Currency and Economic Issues PDF

Author: Wayne M. Morrison

Publisher: Nova Publishers

Published: 2006

Total Pages: 102

ISBN-13: 9781594549342

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China has a policy of pegging its currency (the yuan) to the U.S. dollar. If the yuan is undervalued against the dollar, there are likely to be both benefits and costs to the U.S. economy. It would mean that imported Chinese goods are cheaper than they would be if the yuan were market determined. This lowers prices for U.S. consumers and diminishes inflationary pressures. It also lowers prices for U.S. firms that use imported inputs (such as parts) in their production, making such firms more competitive. Critics of China's peg point to the large and growing U.S. trade deficit with China as evidence that the yuan is undervalued and harmful to the U.S. economy. The relationship is more complex, for a number of reasons. First, while China runs a large trade surplus with the United States, it runs a significant trade deficit with the rest of the world. Second, an increasing level of Chinese exports are from foreign invested companies in China that have shifted production there to take advantage of China's abundant low cost labour. Third, the deficit masks the fact that China has become one of the fastest growing markets for U.S. exports. total U.S. bilateral trade deficits in 2004, indicating that the overall trade deficit is not caused by the exchange rate policy of one country, but rather the shortfall between U.S. saving and investment. This book presents a coherent examination of the details behind China's currency policies as they relate to outside factors.

China's Currency

China's Currency PDF

Author:

Publisher:

Published: 2008

Total Pages: 53

ISBN-13:

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The continued rise in China's trade surplus with the United States and the world, and complaints from U.S. manufacturing firms and workers over the competitive challenges posed by Chinese imports have led several Members to call for a more aggressive U.S. stance against certain Chinese trade policies they deem to be unfair. Among these is the value of the China's currency (the renminbi or yuan) relative to the dollar. From 1994 to July 2005, China pegged its currency to the U.S. dollar. On July 21, 2005, China announced it would let its currency immediately appreciate by 2.1% and link its currency to a basket of currencies (rather than just to the dollar). Although the yuan has appreciated 16% since 2005, many Members complain that China continues to manipulate its currency in order to gain an unfair trade advantage, resulting in U.S. job loss. Numerous bills have been introduced to induce China to adopt a more flexible currency policy. If the yuan is undervalued against the dollar (as many analysts believe), there are likely to be both benefits and costs to the U.S. economy. It would mean that imported Chinese goods are cheaper than they would be if the yuan were market determined. This lowers prices for U.S. consumers and dampens inflationary pressures. It also lowers prices for U.S. firms that use imported inputs (such as parts) in their production, making such firms more competitive. When the U.S. runs a trade deficit with the Chinese, this requires a capital inflow from China to the United States, such as Chinese purchases of U.S. Treasury securities. This, in turn, lowers U.S. interest rates and increases U.S. investment spending. On the negative side, lower priced goods from China may hurt U.S. industries that compete with those products, reducing their production and employment.

Chinese Currency and the Global Economy

Chinese Currency and the Global Economy PDF

Author: Chen Yulu

Publisher: McGraw Hill Professional

Published: 2014-05-26

Total Pages: 177

ISBN-13: 0071829903

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From ancient “knife money” to the Renminbi—a fascinating history of Chinese currency Chinese Currency and the Global Economy is an all-encapsulating study of the Chinese monetary system from the historical perspective of global economy and finance. From economic infrastructure to the cultural system and from world events to the domestic scene, author Chen Yulu describes the metamorphosis of the Chinese currency and examines what is entailed in the globalization of Renminbi against the background of world economic multi-polarization. Chen Yulu is an Eisenhower senior visiting fellow and a Fulbright senior scholar. He serves concurrently as president of Renmin University of China, vice-chairman of the China International Finance Association, and deputy secretary general and executive director of the China Society for Finance and Banking.

China's Trade, Exchange Rate and Industrial Policy Structure

China's Trade, Exchange Rate and Industrial Policy Structure PDF

Author: John Whalley

Publisher: World Scientific

Published: 2013-04-15

Total Pages: 364

ISBN-13: 9814401897

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This book aims at assessing the potential impacts of China's macro economic, trade, exchange rate and reserve management policies for industrial structure and performance. It uses data analysis and econometric methods applied to recent Chinese data. It has a special focus on the performance of the Chinese economy both during and after the 2008 global financial crisis. The book will be of interest to researchers and practitioners in governmental and international agencies both in China and outside of the country. Contents:Overview of Papers and Introduction:Introduction (John Whalley)The Impacts of the 2008 Financial Crisis on China (John Whalley)How Can the G20 Better Support Global Governance? A Chinese Perspective (Yuyan Zhang and Huifang Tian)Macroeconomic Policies:The Chinese Savings Rate: Causes and Implications for Imbalances (Yuezhou Cai and Tongsan Wang)Labour Market Reform, Income Inequality and Economic Growth in China (Ming Lu and Hong Gao)Institutional Constraints, Identity and Household Consumption Heterogeneity in China (Binkai Chen, Ming Lu and Ninghua Zhong)China's Trade:What Accounts for China's Export Market Performance During the Financial Crisis? (Ma Tao and Zhang Lin)The Global Financial Crisis and China's Trade in Services: Impacts and Trade Policy Responses (Ying Fan)How Much Did China's Exports Drop During the 2008–2009 Financial Crisis? (Ran Jing)Exchange Rate Policy and Reserve Management:Employment versus Wage Adjustment and Revaluation of RMB (Risheng Mao)China's Sovereign Wealth Fund as Foreign Reserve Manager: Pre- and Post-Crisis (Yiwen Fei and Xichi Xu)Industrial Structure and Performance:On Industrial Performance During the Global Recession (Lingyun Gao and Qingyi Su)Post–Crisis Infrastructure Investment and Economic Growth in China (Shaoqing Huang, Hao Shi and Weimin Zhou)The Effects of China's Stimulus Policies and Their Transmission Channels (Zhang Tao and Wang Wenfu) Readership: Upper-level undergraduate and graduate students as well as researchers involved in the field of international economics, with a special focus on China. Keywords:China;Macro;Trade;Exchange Rate;Industrial Policy Structure

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