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The Us and China “a Marriage Made in Renminbi-Yuan”

In: Business and Management

Submitted By 1StephanieWF
Words 979
Pages 4
Stephanie Wicks-Franklin
International Economics Research Paper
Instructor Stephen L. Crain
Wednesday, August 23, 2014

The US and China “A Marriage Made in Renminbi-Yuan”
The United States presently in a tightly knit and powerful economic relationship with China. Reason being the US economy depends heavily on foreign capital, in particular the Renminbi-Yuan.
According the US Treasury report as of September 21, 2014 the total debt for the United States was at a staggering $17,752,082,587,972.00, this is almost eighteen trillion dollars. With foreign governments and investors holding roughly half of it and China’s holds the largest portion thereof at $1.268 trillion, which is only slightly down from $1.279 trillion in 2013.
Chinas investment in the US is a smart move on their part because doing so keeps the value of the dollar relatively high in comparison to the Renminbi-Yuan.
Using this very simple it would make China’s exports to the US appear more affordable. This fundamentally helps, China’s the trade driven economy grow.
According to the latest numbers provided they the United States Census Bureau as of July 2014 U.S. trade in goods with China are as follows the US exports approximately $9,288,200 and China imports $40,151,300 leaving a trade deficit of roughly $30,863,000 and the current total for the year being an incredible $186,079,900. In an article written for the Wall Street Journal, in September 2014 titled China's Trade Surplus Hits New High
Trade Surplus Widened to Record of $49.8 Billion the article bolsters the fact that China's trade surplus hit a record high in August for the second month in a row (Magnier,Silk).
Currency manipulation is the most significant reason there is currently a trade deficit between the US and China. The numbers would reflect that by far China is the largest manipulator of US currency.
An article…...

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