China’s Currency Policy
Trade Imbalances and the Global Economy
China’s economy has grown by more than 9 percent a year over the past two decades, and the nation has become an important competitor in world markets and a prominent trading partner with the United States. The low cost of labor in China has also made it one of the major exporters of labor-intensive products and a leading recipient of foreign investment. China’s foreign exchange reserves (stores of international currency held by its central bank), already the highest in the world, have risen more than 25 percent over the last year. The Chinese Government has maintained strict controls on its…
