China might condescend to allow the yuan to fluctuate naturally against the dollar

Story dated 03 June 2005

"China is under intense U.S. pressure to ease its strict yuan peg. But Snow was careful to note that this would be a "sovereign decision" that belonged to Beijing alone . . . The yuan is currently pegged between 8.2760 and 8.2800 per dollar."

I have a question: why is the China's strict control over its currency's value never criticized? Or even talked about seriously? This practice hurts the United States, because no matter how far the dollar falls (See Bush's abandonment of the strong dollar policy), the yuan is still lower so Chinese goods are always cheaper. And the fact is, if the U.S. were doing this to say, the Euro, in order to make sure that American goods were always cheaper for Europeans than European goods, we would be shunned by the international community and maligned mercilessly in the international press. All I ask is that China receive the same treatment.

posted by The Sovereign Editor | 2:40 AM

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