By Padmini Arhant
The G-20 Summit was held in Seoul, South Korea on November 11 - 12, 2010.
Among many important economic issues, the trade imbalances and currency devaluation had drawn the representatives’ attention.
The two leading economies - U.S. and China expressed concerns over the respective trade surpluses and deficits attributed to currency management.
Likewise, the U.S. Federal Reserve proposal to interject $600 billion for economic revival expected to weaken the U.S. dollar while strengthening exports was met with resistance from competing trade partners such as China, Germany, United Kingdom, Brazil…citing the undue advantages to U.S. in the overseas export market.
It is well known that China has benefited from maintaining renminbi under market value boosting its trade to different nations especially the United States due to MFN and the primary creditor status.
Accordingly, China’s trade surplus would be different when evaluated in real market conditions.
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Thank you.
Padmini Arhant
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