If you demand a revaluation of the yuan, and it turns out to be a mistake, then don't complain.
An easy way to deal with China's monetary/trade policy that doesn't require groveling before trade tribunals and is constitutional - impose tariffs.
Floating Chinese currency might be a DISASTER for both sides! China does not have a good banking system.
Whooweeee!!! Wouldn't want thay now would they.
how long have we been talking about this here? years. finally, someone in the administration is coming around (slowly) and sees what is happening.
Politicians positioning themselves for 2006 elections. It will take at least 2 quarters for the positive effects to be seen in the economy, so any revaluation must be done by December 2005 or so, so that by November 2006 the economy will get a bump.
How can they do that without closing down tens thousands of worthless, nonperforming-loan-supported Mao-era "enterprises" and throwing tens of millions more people out of work -- and avoid revolution?
Come on, "free traders!" Your buddies need your money. They need your investment to cover their corruption and bad-debt. What's a few tens of billions dollars more?
It's for the children's toys, clothes, computers, TVs, and advanced nuke missiles. Ooops. That last one is for the PLA, sorry.
We Americans have been subsidizing the Chicoms for way too long. If they want to act like a world player, then let them float their currency, otherwise they can take a flying leap...
I'm sure China is just scared to death about this in general, and of George W. Bush in particular.
/sarcasm