Content from the Brookings-Tsinghua Public Policy Center is now archived. Since October 1, 2020, Brookings has maintained a limited partnership with Tsinghua University School of Public Policy and Management that is intended to facilitate jointly organized dialogues, meetings, and/or events.
Geng Xiao argues that the best way to determine how fast the Renminbi should appreciate is not by listening to politicians in Beijing and Washington, but rather to look at the speed of growth in Chinese productivity.
Xiao also urges the US to have patience, pointing out that even if the Renminbi appreciated at a rate of 8% annually, it would take more than 15 years to achieve Washington’s desired exchange rate.
Commentary
How Fast Should the RMB Appreciate?
May 23, 2007