China’s long practice of undervaluing its currency continues to take a toll on the U.S. economy; it has led to a growing increase in the trade deficit between the two countries, reduced U.S. GDP and has eliminated more than two million Americans jobs, by some estimates. As Congress and the Obama administration wrangle over ways to even the playing field for U.S. interests, expert Kenneth Lieberthal takes a closer look at China’s currency policy.
We are all in new territory given the U.S. abdication of leadership on trade liberalization and the Trump's administration [sic] hostility to the multilateral trading system. In rescuing the TPP and finalizing the Free Trade Agreement with the European Union, Japan has delivered mega trade agreements that carry a very different meaning from when the negotiations started. They make a stand in favor of open markets, tariff elimination exercises, and codification of rules at a time when there is grave concern over the direction of the two largest economies in the world.