Chinese Yuan must be more flexible, says White House

The US mentioned again that they would continue to press China to value their currency to be much more market based.

The white house says that the Chinese Yuan isn’t flexible enough and it should be more open to trade more on foreign exchange markets.

The Chinese Yuan stays low. This makes it harder for US exports to compete with Chinese exports. According to the US, Chinese exports have an unfair advantage in world trade and so steals American jobs.

I think it’s a normal reaction from the US to stress this economic phenomenon. They want to protect the American market from the strong growing Chinese Economy which is changing the global economy.

Robert Gibbs, the press secretary of the White House, said in a news briefing that the Yuan would be on the agenda next week when President Barack Obama meets his Chinese counterpart.

The US treasury is confident that China will decide it's in their interest to resume the move to a more flexible exchange rate.

Chinese officials have given no ground, saying they will stick to a stable exchange rate.

Resolving such trade disagreement requires that both sides need to be calm and sensible.

Bram Verstraete

Source: http://news.bbc.co.uk/2/hi/business/8606249.stm