China's Currency Peg: A Summary of the Economic Issues, April 25, 2005

摘要

The continued rise in the U.S.-China trade imbalance has led to complaints from various U.S. manufacturing firms and workers. Some Members of Congress assert that Chinas policy of pegging its currency (the yuan) to the U.S. dollar constitutes a form of currency manipulation, maintained to make Chinese exports cheaper, and its imports more expensive, and that this policy has negatively affected U.S. employment in several sectors. This report evaluates that assertion, and considers other effects Chinas peg has on the U.S. economy. These include the beneficial effects on consumption, interest rates, and investment spending. Nationwide, these effects should offset job loss in the trade sector, at least in the medium term. Several bills have been introduced in the 109th Congress to address Chinas currency policy, including H.R. 1216, H.R. 1498, H.R. 1575, S. 14, S. 295, S. 377, and S. 593; some would impose trade sanctions against China unless it accepted a market-based system of currency valuation.