An Analysis Of The Relationship Between RMB Exchange Rate Disputes And Sino - US Economic Relations

Japan is the first country to ask RMB to appreciate. But China’s economicdevelopment help Japan get out of its economic recession. So its attitude towards RMBchanged dramatically. After2000, China became the largest trade deficit source and itsforeign reserves increased a lot. At this moment, the evaporation of the Net economybubbles troubled America. And China became its scapegoat of its economic recession.With the trade deficit between China and U.S. is widening, and China’s foreignexchange reserves are increasing, RMB exchange rate gradually becomes an importantproblem in Sino-U.S. relations.This essay reviews the current status of RMB exchange rate. At the same time,this paper also analyses many views about the RMB exchange rate, on the basis of theanalyses, the author provides her own points. And the author puts forward directionand suggestions for RMB’s appreciation through reviewing the Yen’s appreciation. Theauthor considers that it needs both sides’ efforts to handle the RMB’s exchange rateissue. Especially, the Sino-American Strategic Economic Dialogue, high-level contact,will strengthen the negotiation and coordination. And it a very effective way to handleRMB exchange rate issue.The whole essay is divided into five parts. The first chapter discusses exchangerate mechanism and RMB exchange rate reform. The second chapter elaborates theprocess of RMB exchange rate issue. The third chapter discusses many points aboutRMB exchange rate dispute and effects on China, U.S. and the world. In the fourthchapter, the author will provide her own views on the issue and prove the author’spoint. The fifth chapter will forecast the possible future of RMB exchange rate issueand Sino-American relations.