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USA – China Trade Relations Over the past decades China has consistently run a trade surplus...

USA – China Trade Relations
Over the past decades China has consistently run a trade surplus with the USA, accumulating very large holdings of US Treasury bonds. Please, discuss the pros and cons of this situation from the perspective of China! What is the role of the exchange rate (between the US and Chinese currency) in this relationship? Classical economists would argue that the trade surplus would make the Chinese currency gain value and erase competitive gains of China – what do you think about that?

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Rahul Sunny answered 2 years ago
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