Buy custom U.S. urges china to save less buy more.
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1199 |
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deficit with China down completely, but it would definitely make a very significant impact. The problem that the U.S. faces with China is that Chinese commerce officials have decided to peg the yuan to the dollar. A pegged exchange rate is one which is legally determined?only the government can change it, it is not determined by a free market...
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And because Chinese officials have pegged the yuan to the dollar at an artificially low rate, the yuan will not appreciate no matter how much the demand for it increases. Chinese officials let the yuan appreciate by a small amount after pressure from the U.S., but U.S. Treasury Secretary John Snow is trying to avoid more "arm twisting" by working with Chinese officials to encourage more spending from the average Chinese citizen...
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