The Political Logic of U.S. Pressure on Renminbi Exchange Rate

When entering into the new century,exchange rate protectionism has become the new content and form of U.S. protection against China.It seemingly originates from America's accusations of Renminbi's serious undervaluation and"China's exchange rate manipulation". However,such accusations not only have no scientific foundations,but also lack the support from empirical data. This essay argues that interest group politics is important micro mechanism in U.S. pressure on Renminbi exchange rate,while international monetary power is key macro mechanism. To relieve the pressure from U.S.,China needs to take efforts in three aspects:First,divide U.S. protectionist economic interest groups and attain supports from U.S. anti-protectionist economic interest groups as much as possible. Second,strengthen its autonomy in U.S.-Sino production structure,financial structure,trade structure,and knowledge structure. Third,deepen coordination and cooperation with U.S. counterparts.