Tim Geithner brands China a currency manipulator

Economist | Jan. 24, 2009 (News Analysis)

American policymakers have long pushed Beijing to accelerate the appreciation of the yuan, arguing that China’s exchange-rate policy played a big role in creating the global imbalances and that—both for the sake of China’s economy and the rest of the world—the currency needs to strengthen. But Hank Paulson’s Treasury studiously avoided accusing Beijing of “currency manipulation”, a term that carries legal implications. Full Story »

Posted by Derek Hawkins

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4.7

by Li Lou - Jan. 25, 2009

Economist is reputed for its balanced and fair reporting (objectivity seems to be a out-dated term these days). Especially taken into account of its stance as a publication in a third-party country in this Sino-American currency "warfare", this piece delivers a full range of perspectives on this issue. Also, the language is quite concise and brief, better than layers of quotes which we usually find in other news reports. But one thing that needs our rethinking is the common practice of most news magazine to embed comments into news reports. It is a good way to provide more interpretation to contextualize the story. But it nevertheless affects the independent judgment of the readers.

This is a very complex issue. I believe the Chinese government, under the current circumstances, is doing everything they can to offset the negative impact of global economic downturn. Chinese currency has been appreciating for a whole year with accelerating rate, under the pressure of U.S. government. This is a gesture of sincerity of the Chinese side. The American side should appreciate this and not ask too much.