The Exchange Rate Problem
Between America and China
• In 2008, the four of the investment bank
Lehman Brothers Holding Inc. applied for
the bankruptcy protection. The economic
crisis was coming.
• In 2009, America declaration the “Chinaspecific safeguard” about rise the duty of
• In 2010,……….
• American government thinks because of
the exchange rate, Chinese Yuan was
undervalued, which causes too many
import from China. As a result, this rise
Americans unemployment rate.
• I don’t think China should be forced to
change the rate so quickly.
• Five Reasons and resources to support
1. Changing Exchange Rate to improve US
2. Changing Exchange Rate will result in
3. Fast Exchange Rate Change will hurt US
• Resource : China.org.cn
• The depression of economy is a big
problem which Obama took
measures(domestic stimulus) to solve, but
he failed many times. I think he want to
change the exchange rate to solve this
• Resource: Ubikwiti
• If Chinese Rate rise too fast, a number of
Chinese employee will face to the
unemployment even though Chinese
economy is surplus . It is paradox to
American values named equal
• Resource: watching America
• If the exchange rate rise too fast, it is also
harmful to Americans.
• RMB appreciation would only cause
trouble to Chinese exports and would not
affect price disadvantage of US products.
However, if China is the only one to
appreciate, the US would see a reduced
share of imports from China. Soon ASEAE
and other south Asian countries would fill
the void which also bring problems to
• From that five reasons, I think don’t China
should change the exchange rate so
quickly. It is harmful to international
• How can we solve this problem???
• In my opinion, I think the best way to
solve this problem is the sustainable
and slow rise the rate. In this way, it
will not bring so much problems
because China can have enough time
to develop the domestic market.
American government use this time to
develop in new industry to instead of
using the production of “MADE IN
In addition, not only can solve many
problems, but also decrease the impact
to the world economy.
• Uren, David. “Battle between the US and China over the
Yuan Heating Up." Wall Street Journal Jan 。 2010: n.
• Ikenson, Daniel. “Free Trade Bulletin.” CATO Institute. n.
• Quing, Zhangguo, . "In RMB Exchange Rate, the U.S.
Finds a Political Weapon ." china.org.cn Saturday, Apr
17, 2010: n. page. Web.