﻿ Strong yuan: good for poor nations? - Taipei Times Tue, Sep
14, 2010 - Page 8　News List  Strong yuan: good for poor nations?
By Dani Rodrik  China’s trade balance is on course for another
bumper surplus this year. Meanwhile, concern about the health of
the US economic recovery continues to mount. Both developments
suggest that China will be under renewed pressure to nudge its
currency sharply upward. The conflict with the US may well come
to a head during US Congressional hearings on the yuan to be
held this month, where many voices will urge US President Barack
Obama’s administration to threaten punitive measures if China
does not act.  Discussion of China’s currency focuses around the
need to shrink its trade surplus and correct global
macroeconomic imbalances. With a less competitive currency, many
analysts hope that China will export less and import more,
making a positive contribution to the recovery of the US and
other economies.  In all this discussion, the yuan is viewed
largely as a US-China issue