This week, China set the price of their currency to the US dollar at 7.0136 per dollar (above 7) which has not occurred in many years. A weak currency makes Chinese goods cheaper for purchasers outside of China and the United States deems this to be a practice that is unfair competition with US companies. For that reason, the United States (for the first time in 10 years) has labeled China a currency manipulator country.
This past week I was asked to moderate a panel of visiting Chinese officials with US technology investors. The event, sponsored by the government of Nanking in cooperation with CNBC Asia, was well attended and provided a fascinating insight into relationships between China and US economic interests.