(Newser)
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Despite the yuan's continued appreciation against the dollar this year, at nearly 7%—double its growth in 2006—critics say the currency needs to adjust even higher to balance China's trade surplus, reports the Wall Street Journal. In the US, China’s economic strength has become a standard concern on the presidential campaign trail as candidates decry Bejiing’s currency manipulation.
Analysts expect the yuan to become pricier in 2008, easing economic growth pains: inflation, a swelling account surplus, and worrisome overvaluation in Chinese stock markets. But US officials want more, arguing change isn’t occurring fast enough. China’s foreign-exchange reserves are expected to hit $1.5 trillion soon, a sign the country's export business won’t slow anytime soon.
