On The Rmb Exchange Rate On The Sino-us Relations

As the world's most developed country since industrialization, the United States enjoys an outstanding position in the international stage and it is foreseeable that the US will keep its advantageous momentum for a long time. And meanwhile, China is the largest developing country in the world. Since 1980s, China's role of being a great power together with its international influence has been gradually enhanced due to its strong economic growth. And it is foreseeable that China will continue to pursue its goal for peace and development in the long run. From the 21st century, the United States and China are closer to each other and have conducted various cooperation in more and more international affairs, a sign rarely shown in the past three decades since China and US established diplomatic relationship. However, even in an age for such friendly cooperation, China and the US have different opinions regarding exchange rate, a hot issue in the current bilateral dialogue. RMB rate has exerted an influence on Sino-US relations. This article points out exchange rate's political features besides its economic ones. As exchange rates occur at international economic interactions, it forms a part of international politics. The exchange rate of one country forms part of the country's state sovereignty. And international exchange rate system also forms part of the international mechanisms. And therefore, exchange rate is an inevitable topic for Sino-US relations. Through an analysis on trade data, which are related to exchange rate, this article asserts that in a globalized world, exchange rate is not a direct factor leading to Sino-US trade imbalance. And it is inappropriate for the US to criticize China's exchange rate in its economy. The economic feature of exchange rate or in other words, the impact of exchange rate on bilateral trade is not the key point for US's pressure on RMB appreciation while realizing US's national interest is the real purpose instead. At the same time, safeguarding China's national interest is also a starting point for China's exchange rate policy. The truth for China and US's disputes on exchange rate exactly lies here. This article also analyses the process and result of Japan's exchange rate appreciation in an attempt to learn experience for coping with appreciation pressure. By studying China's and US's respective national interests, the author believes the solution to settle exchange rate disputes lies in realizing both countries'common interests. Only the cooperation based on common interests can last long and stable. And therefore, it is important for the US and China to ascertain each other's interest appeals and extend their interests in the exchange rate area to other cooperative fields and then an interdependent and harmonious development can be achieved.