China’s President Hu Jintao is scheduled to commence the US state visit tour very soon, and it is remarkable that he is the first Chinese leader in almost 13 years to visit American soil for the first time. It is expected that both leaders are going to talk about strong business deals, which will benefit both nations respectively.
Mr. Jintao has first planned to have a dinner at Washington DC, and they he will leave for Chicago on a two day trip. But there is news which is quite discouraging for both countries, as the US Senators had pressed the congress to penalise China for manipulating it currency. For the country is not allowing the Yuan to rise and as a result the cost of American products in China is quite expensive.
The President of China on the other hand has said, the Yuan has not been under valued and there is a floating exchange rate regime which allows the currency to fluctuate on the basis of international balance of payments and reserves. He is also likely to buy products from America for manufacturing of cars, planes and other industrial assets.
Source: BBC
