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State Think Tank: The Purpose of the U.S. Senate Bill on Chinese Currency Is to Slow China’s Economy

Guo Xiangang, the Deputy Director of China’s Institute of International Studies, commented on the bill on China’s currency that is before the U.S. Senate, the Currency Exchange Rate Oversight Reform Act of 2011. He observed that, in addition to political motivation because of the upcoming election year, the move occurred because the U.S. has its own problems. In particular, in recent years, China has surpassed Japan and become the No. 2 economy in the world. “The United States of course is No. 1. From the U.S. perspective, it has a sense of crisis, worrying that China will surpass the U.S. and become No. 1 in a few years. Therefore, it has been trying various approaches. One is to find fault with and attack China. A second is to reduce China’s growth rate, or even to contain China, believing that will slow down China’s growth.

Source: China National Radio, October 3, 2011