America and China are each others biggest trading partners but a new development in Sino-American relations now appear to have soured this relationship. Lawmakers in America have opened up debate on a bill that would appreciate the Chinese Yuan in relation to America Dollars. This currency bill arises from allegations that the low value of the Chinese Yuan has caused the trade imbalance and unemployment that has swept through America. China has vehemently denied these allegations and countered that America has been “politicising” the currency issue. Going even further China has accused the America of blaming China for its own failings as the two juggernauts edge closer to a “trade war”. It seems very convenient that just as America facing is another downturn, they are putting pressure on China. The American economy has long suffered from inefficiency and mismanagement of its resources which has resulted in the weakening of its economy and a currency bill isn’t going help fix to the problem. It will take a major restructuring of the whole American economic system before it is able to have a trade balance with China and no quick fixes or trade wars will change that.
