Walter Mitty and the Dragon:An Analysis of the Possibility for WTO or IMF Action against China's Manipulation of the Yuan

摘要

Given the recurring debate over whether China's monetary policies constitute currency manipulation actionable under the World Trade Organization (WTO) or International Monetary Funds (IMF) Agreements, a legal analysis of these possibilities is prudent. As shown in this article, China's policies do not run afoul of the Agreement on Subsidies and Countervailing measures, as they do not constitute a financial contribution under Article 1. l(a)(l) nor are they 'specific' within the meaning of Article 5. Tliese policies are also not prohibited by General Agreement on Tariffs and Trade (GATT) Article XV, primarily because they are not covered by a proper interpretation of the scope of this Article. Finally, Article IV of the IMF Agreement is not violated because the necessary wrongful intent is not present and/or cannot be demonstrated. Tliere is therefore no legal basis for action against China under these Agreements.