China Loosens Up on Yuan

Congress stews as Beijing keeps yuan weak vs. dollar

(NEWSER) - Treasury Secretary Henry Paulson has denied congressional requests for a formal accusation of currency manipulation against China, the Wall Street Journal reports. China's tight restrictions have kept the yuan artificially low against the dollar for decades, but recent record highs, combined with signs that Beijing may plan to let up on currency controls, have helped reduce tension. More»

US-China talks bring good news for securities firms, but no yuan reform

(NEWSER) - Talks between American and Chinese economic officials thudded to a close today, offering mild changes to the financial sector in lieu of major currency reform. The deal hammered out by Treasury Secretary Hank Paulson and China's vice-premier Wu Yi promise foreign financial companies more access to Chinese markets and allows American investors to purchase larger amounts of Chinese stock. More»

Bill would place tariff on countries that depress their currencies

(NEWSER) - A senior Chinese official warned today that the US is in for a “trade war” if it enacts a Senate bill that would punish China for artificially keeping its currency low. The bill “in no way represents the reality of the economic and trade relationship between China and the US,” a Chinese foreign minister tells Reuters . “The only result would be a trade war … that would be a lose-lose situation for both sides." More»

(NEWSER) - The Chinese government is threatening to crash the American dollar by liquidating its $1.33 trillion in foreign reserves if the US dares impose trade sanctions to force a revaluation of yuan, reports the Telegraph. Two Communist Party officials have given interviews in recent days with stern warnings directed at the US that China is prepared to engage in an economic "nuclear option." More»

Weak yuan is driving China's economy to a record expansion; trade surplus nearly doubled

(NEWSER) - China's trade surplus surged to a record $26.9B in June, an 87% increase since last year. Economists attribute the trade gap to China's significantly—as much as 40%—underpriced currency, the yuan, reports Bloomberg. Half of China's surplus is with the US, which recently began preparing legislation to sanction countries that deliberately use a weakened currency to gain an unfair advantage. More»