Congress Factors Analysis Of RMB Exchange Rate

After the cold war, the US congress’s intervention, which formed a greatcontainment on foreign policy, of China, made by the executives regarded the presidentas its head, had been deeper and deeper, thus exerting vast impact on the relationshipsbetween China and American. After China’s entrance to WTO, while Sino-US relationhad been going quite well, the contradictions in economic and trade such as frictions anddisputes also follow. In the financial field, the most typical example that reflects thecongress of United States’s intervention in Sino-US economic and trade relations isexerting the pressure of RMB exchange rate. The roles that involved in this dispute arediverse, from individual to group, from the legislative institutions to the governmentdepartments. And congress, as one of the pressing force, is gradually evolving into themajor force, the challenger and the promoter, which plays an important role in pressingthe appreciation of RMB exchange rate. From the point of view of economics, it iscontrary to the objective facts if the United States congress just owe domestic economicand social problems to China’s exchange rate. And from the perspective of theinternational political economy, we can better explain why the congress of the UnitedStates puts pressure to the RMB exchange rate, thus we can make the correspondingstrategies to cope this situation.In the short term, the impact of US congress bill related to China’s exchange ratewon’t work as the “hammer”, which may suddenly exerts immeasurable consequences.However, the congress would have enough time and strong will to “loose the screw”.Finally, the administrative department would have no choice but to obey the will of thecongress, enacting the policy of foreign exchange rate and the rules of trade that wouldharm Sino-US relation. In a nutshell, the dispute of the exchange rate between China andUS would be an important factor that impeding the development of Sino-US relation.Therefore, we should make the most use of the divergence among House ofRepresentatives, senate and the executives to enact overall strategy, build diversechannels to communicate with US congress, put empasis on the exchanges withcongressional leaders, senior lawmakers and key state senator and we also should takefull advantage of other resource such as the lobby and the news media to enact thecorresponding strategies.