Tensions in U.S.-China relations have been rising recently. Trade spats, alleged Chinese hacking attacks directed at American companies, differences over Internet freedom standards, U.S. arms sales to Taiwan, and the pending meeting between Obama and the Dalai Lama are all souring the world's most important bilateral relationship. An old and especially intractable issue is now being added to this long list: the management of China's currency, the yuan or renminbi. Christopher A. McNally discusses the implications of China's exchange rate policy for U.S.-China relations.

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