Currency Policy Won't Fix Chinese Trade: Testimony

Law360, New York (April 22, 2010, 6:02 PM EDT) -- A Heritage Foundation economist told a U.S. Senate panel Thursday that forcing China to increase the value of its currency wouldn't necessarily fix the trade gap, saying the U.S. should instead focus on eliminating China's subsidies and reducing its own deficit.

Derek Scissors, who studies China's economy at Heritage's Asian Studies Center, spoke at a hearing before the Senate Committee on Banking, Housing and Urban Affairs as Congress mulled legislation to tackle China's purportedly undervalued currency.

But Scissors contends that China's currency value isn't the main...
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