You Tube

Skip Navigation LinksNews > Legal > China Balks At Significant Yuan Appreciation
Printer Friendly

China Balks At Significant Yuan Appreciation
Vol. 852 
September 20, 2011

In response to renewed criticism from U.S. lawmakers, Chinese officials say they will not allow the yuan to rapidly increase in value against the dollar, further intensifying an ongoing international trade debate. China's retort, released through the country's official Xinhua news agency in an editorial, also effectively accuses the U.S. of not taking responsibility for its own economic struggles. "China will not blindly, because of pressure from a bill in another country's congress, let its currency rise," Xinhua said.

For several years, U.S. officials have maintained that China deliberately undervalues the yuan in an attempt to give its companies an unfair price advantage in global trade. Last week, U.S. Senate Democratic Leader Harry Reid said lawmakers will try to soon pass legislation aimed at forcing China to stop holding its currency below market value. The Xinhua editorial said Reid has "stepped into a serious mistaken zone" regarding the yuan. "The high unemployment rate in the U.S. is rooted in its own sluggish economy and must be solved by itself," Xinhua said

In the Xinhua article, China said it intends to keep its currency at a "reasonable and balanced" level, arguing a significant rise would hurt the global economy. Since China ended a de-facto peg of its currency to the dollar last June, the yuan has appreciated by a total of 6.75%. China's decision to allow the yuan to rise in value is part of a stepped-up effort to curb inflation in the Asian superpower. A stronger yuan also translates into rising prices on goods imported from China.

While U.S. lawmakers have been threatening to punish Chinese exports with tariffs since 2005, no legislative action has been taken. Last year, the U.S. House of Representatives passed a bill that would have levied extra duties on Chinese goods, but the measure was never approved by the Senate.

Sponsored By:

Making You Money: What ASI is all about.

Promotional products, also known as ad specialties, make up a $20.5 billion dollar industry and are used by virtually every business in America. Why? Items like mugs, pens and t-shirts are memorable and provide a better cost per impression for advertisers than almost every major marketing effort like prime time TV, magazines and radio.

With so many businesses buying ad specialties there is a huge opportunity for professionals looking to make great money running a promotional products distributorship. It’s easy and inexpensive to get started and you can work from home.

© 2014, The Advertising Specialty Institute®. All Rights Reserved.

  • A business opportunity to reinvent your career in an exciting field
  • Work at home - for yourself - not by yourself
  • Make money selling ad specialties
  • Partner with a time-tested industry leader
  • Get started instantly with all the tools you need