home > archive > 2011 > this article   Actually, Obama – let's
keep the renminbi devalued  By Evan Chow web posted September
12, 2011  MoneyA while ago, you might have read in the paper
about China's plan to keep their currency, the renminbi,
intentionally devalued on the foreign exchange market. So far,
artificially reducing the renminbi's value appears to have
worked very well in increasing exports, boosting internal
production, and creating jobs. Because of this artificially
induced comparative advantage, China has enjoyed enormous trade
surpluses and rapid industrial growth. In a 2010 G-20 press
conference in Seoul, Korea, President Obama asserted that China
should stop this devaluation policy, as to let markets raise the
currency's value to its natural level. He said:  "And the issue
of the RNB is one that is an irritant not just to the United
States, but is an irritant to a lot of China's trading partners
and those who are competing with China to sell goods around the
world. It is undervalued. And China