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Last week the Chinese government announced that it will move closer to allowing its currency, the yuan or renminbi, to float in the world economy. This move will slowly break it away from being pegged to the weak U.S. dollar. A practice which U.S. politicians, and the International Monetary Fund, claim is undervaluing China exports by as much as 40%.

Washington's hope is that the appreciation of the yuan would make Chinese imports less attractive versus domestically manufactured goods. This wo...
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