Absent revaluation, retaliation? Reactions to U.S. restrictions on Chinese exports
Should the United States take action over China’s exchange-rate policy? This paper argues "yes." But while China would be momentarily hurt by any tariffs, the longer-term sufferers would be U.S. companies, workers, and consumers. The United States should instead follow C. Fred Bergsten’s three-stage plan of engaging the IMF and WTO. The column adds that a long-run solution should be fleshed out within the G20.