After years of grabbing the spotlight in U.S.-China economic relations, U.S. concerns over the value of Beijing’s currency appear to be fading, giving ground to newer issues like cyber-security and trade secret theft.
Some lawmakers continue to argue a weak Chinese yuan is robbing jobs from the United States. But action to force a change is unlikely and the issue will probably remain on the back burner as long as the U.S. economy continues to improve.
An increase in the value of the yuan, a big drop in China’s global trade surplus and a rise in labor costs that has made Chinese products less competitive have conspired with a pickup in U.S. job growth to take the wind out of Washington’s sails.
On top of that, the United States has faced fury from other countries for an aggressive easing of monetary policy that critics contend seeks to drive down the dollar, a charge that puts Washington in a tough spot to criticize China.
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