There has been tremendous pressure on China for some time,
especially from the US to revalue the Yuan. prompted primarily
by the ballooning trade deficit of the US against China. China
and its exchange rate policy China is primarily an export-
oriented country. China fixed the value of the renminbi to the
value of the U.S. dollar at a ratio of 8.27 to 1 since 1994.
Upon entering the 21st century the U.S. Senate began to debate a
bill that would raise U.S. tariffs on Chinese goods by 27.5
percent unless China appreciated its currency to market levels
by March 31, 2006. After significant pressure from the United
States, China announced on July 21, 2005 that it moved from a
fixed exchange rate regime to a managed float against a basket
of currencies. The Yuan appreciated 21 percent against the
dollar during 2005-08 before the policy was suspended in July
2008 to protect its exports from subprime crisis volatility. It
resumed in June 2010. Indeed, China’s currency has appreciated
by about 2.2 percent with respect