US doomed to failure in persuading China to rise the yuan

This week China will have strategic negotiations with the US and as America always tries not to lose an opportunity of pressing the Celestial Empire to let the yuan strengthen China is ready to resist any economic intrusion into its currency policies. Chinese administration is firmly determined to keep to their own schedule for currency appreciation.

"I don't think [China] would do anything drastic in the near term. They would continue to push their own agenda, which is internationalizing the [yuan], and moving toward [currency-rate] flexibility in a very, very gradual manner," said Kevin Lai, economist at Daiwa Institute of Research in Hong Kong. 

The annual closed-door talks between the US and China were scheduled for Monday in Washington. The negotiations come a few days after US Commerce Secretary Gary Locke said that China’s allowing for greater flexibility in its exchange rates and opening up its domestic markets for imports and foreign investors would significantly contribute to the recovery of the world economy.

Besides, the International Monetary Fund also urged China last week to let the yuan rise in value. It is obvious Chinese government wants to protect its exporters and those who work for them by keeping its exchange rates relatively flat.