The yuan rate has been held at a fixed rate, set by the Chinese government for a few years. It has been accused of the rate leading to unfair trades. Due to the increase of imports from China to the US, as it exhibited the record high surpluses on the Chinese side last month, the trade deficits prompted the US lawmakers to reconsider their options to put China as a currency manipulator in the exchange rate report, possibly in October. They claim the "dumping" of the unfairly cheap Chinese goods and the subsidies the government put in to their exports deprive them of the US jobs.
Some predicts that as the US continue to manufacture its goods in China, their technological advancements will be transferred to China soon enough. Chinese government openly declared that it will manufacture airplanes and fighter jets. The military expansion of China put the region hang in imbalance as its military expenses shows double digit growth. Its plan to build two aircraft carrier would cost them some twenty billion of dollars.
The counter arguments go that when China can not even manufacture decent cars, when will it be able to manufacture fighter jets? It possess hundreds of nuclear weapons and it has shot down a satellite in 2007, but there still be some time before they can manufacture weapons that can beat the US weapons.
Some predicts that as the US continue to manufacture its goods in China, their technological advancements will be transferred to China soon enough. Chinese government openly declared that it will manufacture airplanes and fighter jets. The military expansion of China put the region hang in imbalance as its military expenses shows double digit growth. Its plan to build two aircraft carrier would cost them some twenty billion of dollars.
The counter arguments go that when China can not even manufacture decent cars, when will it be able to manufacture fighter jets? It possess hundreds of nuclear weapons and it has shot down a satellite in 2007, but there still be some time before they can manufacture weapons that can beat the US weapons.