In 2010 an undervalued renminbi was a significant drag on advanced economies, including the United States. Since then, however, two big things have happened: relatively high inflation in China, and some appreciation of the renminbi against the dollar. As a result, the real exchange rate of China against the United States (based on consumer prices), has appreciated significantly:
At the same time. China’s surplus has come way down:
So this is an odd time to be making confrontation over China’s currency a centerpiece of your economic policy — unless, of course, it’s just bluster aimed at making voters think you’re tough.
We have learned that we cannot live alone, at peace; that our own well-being is dependent on the well-being of other nations far away. ... We have learned to be citizens of the world, members of the human community. ... We shall strive for perfection. ... We may make mistakes, but they must never be mistakes which result from faintness of heart or abandonment of moral principle.