Tags: China | Yuan | Dollar | Dominance

Congress Warned: China’s Yuan Threatens Dollar's Dominance

By    |   Friday, 18 Nov 2011 09:56 AM

Congress has been warned that China's yuan is a growing threat.

A BBC article says that the U.S.-China Economic and Security Review Commission, an independent panel set up by Congress, warns that the Chinese currency could mount a challenge to the dollar's dominance within the next five to 10 years.

This threat was outlined in an International Business Times article this summer, which noted that Beijing has been promoting the use of the yuan beyond its borders since 2009 to settle trade transactions.

The panel's findings came only days after Reuters reported that President Barack Obama insisted that China allow its currency to rise faster in value, saying it was being kept artificially low and was hurting American companies and jobs.

According to the report, some of those job losses could be in the technology sector.

The committee warned that while China was currently a hub for low-cost manufacturing, it was making rapid progress in the fields of high-tech research and development and production, says BBC.

Such advancements are significant because coupled with an undervalued yuan, it could result in suffering for high-tech businesses in the United States, the panel found.

The yuan has been of increasing concern to the United States, so much so that a bill was drafted aiming to force China to allow the value of its currency to rise. Though that particular measure lacked the necessary support to survive, the U.S. appears to be taking an increasingly firmer stance indicating the realization that issues with China's currency should not be ignored.

Reuters reported that at a closing news conference of the Asia-Pacific Economic Cooperation summit Obama bluntly said “enough's enough.”

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Congress has been warned that China's yuan is a growing threat. A BBC article says that the U.S.-China Economic and Security Review Commission, an independent panel set up by Congress, warns that the Chinese currency could mount a challenge to the dollar's dominance within...
China,Yuan,Dollar,Dominance
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2011-56-18
Friday, 18 Nov 2011 09:56 AM
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