This weekend, President Barack Obama spoke at the Asia-Pacific Economic Cooperation summit in Honolulu, stating that China is now a “grown up” economy, and must learn to act more responsibly on its currency.
“We welcome China’s peaceful rise,” he said, but Beijing should cease “gaming” the international economic system and help level the field for foreign businesses from the U.S. and around the world. He added that China is deliberately keeping its national currency at a low point in order to support Chinese exporters.
“Most economists estimate that the renminbi (yuan0 is devalued by 20 to 25 percent,” he said. “That means our exports to China are that much more expensive and their imports into the United States are that much cheaper.”