Thinking About China
Opinion

Washington and Beijing Push the Yuan in the Same Direction but for Very Different Reasons

Washington, focusing on trade, has encouraged Beijing to do what it wants to do for other reasons.
Washington and Beijing Push the Yuan in the Same Direction but for Very Different Reasons
Yuan notes and U.S. dollars seen at a cash exchange. STR/AFP/Getty Images
Milton Ezrati
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Commentary

The U.S. Treasury has gone on record encouraging Beijing to raise the yuan’s value against the U.S. dollar. The authorities in Beijing, most especially the People’s Bank of China (PBOC), seem willing, indeed eager, to comply with Washington’s wishes. Despite the apparent goodwill and agreement, the two parties are hardly on the same page.

Milton Ezrati
Milton Ezrati
Author
Milton Ezrati is a contributing editor at The National Interest, an affiliate of the Center for the Study of Human Capital at the University at Buffalo (SUNY), and chief economist for Vested, a New York-based communications firm. Before joining Vested, he served as chief market strategist and economist for Lord, Abbett & Co. He also writes frequently for City Journal and blogs regularly for Forbes. His latest book is “Thirty Tomorrows: The Next Three Decades of Globalization, Demographics, and How We Will Live.”