This is a rather long article, if you are interested in reading the whole thing click on the link at the bottom of the posting. I've just put up the following paragraph from the article which seems to sum up the U.S. position. Interestingly on TV last night an economic commentator said although China has a $2 billion surplus with the U.S. China has a $1 billion deficit with the rest of the world.


China yuan still undervalued despite reform: US
P. PARAMESWARAN
June 24, 2010 - 12:24PM
Both China and the United States have pursued cases against each other at the World Trade Organization (WTO).
A Commerce Department ruling that any Chinese advantage via the yuan exchange rate was a trade subsidy deserving of financial relief through import duties could lead to a deluge of countervailing duty cases from US manufacturers.
Unmoved by Beijing's pledge of limited currency reform, US lawmakers said Wednesday they would press ahead with legislation they said would treat "currency manipulation" as an illegal subsidy and enable US authorities to impose tariffs on Chinese goods.
"We're fed up and we're not waiting. Nothing ever changes unless you force the Chinese to act," Senator Charles Schumer from Obama's Democratic party declared at the hearing.
"The Chinese will keep treating us like they have us on a yo-yo unless we make a serious push for our legislation."
Republican Senator Chuck Grassley called on Obama "to prepare a case against China?s currency manipulation" at the WTO.
The daily movement of the yuan since Monday -- when the markets first reacted on the Chinese announcement -- has been minimally up and down, indicating that Beijing continued to keep a tight rein on the yuan.
Link here:
http://news.smh.com.au/breaking- ... -20100624-z14o.html

Very good, let's have the trade sanctions and see who will hurt more. The US cannot expect to continue to dictate its terms on the issue. Trade sanctions? So be it.

that means going to china for punts is going to get expensive now =(

Thought someone said it was choreographed with Obama and Hillary. That Guevara going to take credit. Now his own democrats are up in arms.  What's up here

China sets strongest yuan rate in years
June 28, 2010 - 12:14PM
               
AFP
China set the strongest yuan exchange rate in years on Monday after Beijing came under renewed pressure at the weekend's Group of 20 summit to let the currency appreciate.
The People's Bank of China said it set the central parity rate - the centre point of the currency's allowed trading band - at 6.7890 to the dollar, a fraction of a per cent stronger than Friday's 6.7896.
It was the strongest level policymakers have set since China unpegged the currency in July 2005 and moved to a tightly managed floating exchange rate.

At the G20 meeting in Toronto, US President Barack Obama said he expected China to take seriously a promise made a week ago to allow yuan flexibility, which he said has given Beijing a significant trading advantage.
"My expectation is that they're going to be serious about the policy that they themselves have announced," Obama said at the end of the summit on Sunday.
China's central bank pledged to let the yuan trade more freely against the dollar but ruled out dramatic moves in the currency or a one-off appreciation.
The action was widely seen as a bid to head off an ugly spat at the G20 meeting following intense pressure on Beijing to embrace currency reform as part of efforts to enhance a global economic recovery.
The currency appreciated 0.53 per cent against the greenback over the course of last week.
© 2010 AFP
Link here:
http://news.smh.com.au/breaking- ... -20100628-zdg9.html

Very clever of the Chinese. Since the revaluation announced early last week they have increased the value of the yuan by over 1%. Don't think the yuan would move up anytime soon.

Amazing amount of dollars they've had to buy over the last three years to keep the yuan where it is.

Does not seem that the yuan is getting the press at the g-20 meeting.  Seems like getting deficits under control has taken front page. Also see that bank sponsored retail accounts are looking at US stock market now.