Forbes: snow because of China's resignation

This article is the United States "Forbes" magazine on May 30, published a commentary, the original author is Paul Maidment, excerpts below are for informational purposes only.

If the Fed Chairman Ben Bernanke in a statement issued after rate hike is just confused let Wall Street, then Treasury Secretary John snow to China was not identified China as the "exchange rate control" then let felt disappointed Wall Street.

In the half-yearly publication of a report on the exchange rate of the United States Department of Treasury has adopted the modifications of the "technical" means to use the "rate-distortion" replaces "exchange rate manipulation". Despite recognition of the "China is the Renminbi exchange rate issues, progress," but the United States Department of Treasury has still not identified China as the "exchange rate manipulation".

Although Ben Bernanke use ambiguous language, Wall Street still believe the fed in its next regular meeting will rise again. In this context, the snow is just the opposite of the approach, even though he repeatedly used hard-line rhetoric, but Wall Street that does not give the real pressure on China, the Renminbi exchange rate and the United States on China trade deficit not much substantive progress. This provoked strong protectionist sentiment, some United States Congressman calls on China to implement more hardline trade policy.

If the Minister finds that China is "exchange rate control", the United States Congress can take further action to punish China bills into practice. However, the snow did not do so. His efforts to persuade the White House and Congress believes that the RMB exchange rate was moving in the right direction. Snow said that, although this is a painful process, but the Renminbi exchange rate really is moving in the right direction.

China in the last 7 months to cancel the operation more than 10 years old will be pegged to the US dollar exchange rate of RMB exchange rate policy, and let the RMB exchange rate appreciation of $ 2.1%. At present, the appreciation of the Renminbi against the US dollar rate to 2%.

Despite the snow on the reform of the Renminbi exchange rate will not be satisfied, but he refused to identify Chinese "currency manipulation", the main purpose is to avoid the United States and China will suffer a trade war.

Although this decision very rational and more consistent with the interests of the United States, but in an election year, the snow could therefore become a victim of political struggle. In Washington, nobody will really get down to consider trade war on the United States caused much damage.