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Department of Agricultural, Environmental, and Development Economics


China and the U.S. Trade Deficit: Why Does Appreciation of the Renminbi Matter More to China?

Analyzes the reasons why China is currently running a large trade surplus, and why the Chinese Communist Party leadership wants to rebalance its economic growth path. The overall conclusion is that while revaluation of China's currency will not do much for the U.S. trade deficit, it will be beneficial to the Chinese economy and will help reduce current global economic imbalances.

Publication type: 
Policy brief
Date published: 
Saturday, September 1, 2007