July 19, 2006 – Although China is reporting their largest economic growth in over a decade, there are still no signs the Chinese government will allow their currency strengthen.
A year ago China revalued their currency by a mere 2.1 percent. The yuan has since increased only 1.4 percent against the dollar – less than some currencies move in a day.
By undervaluing their currency by up to 40 percent over the last decade, China has cost the U.S. thousands of manufacturing jobs. The artificially low yuan also led to the U.S.’s record $202 trade deficit with China last year.
Read the entire Associated Press article here.