China is doing its best on flexible currency

China allowed the yuan to be freely convertible under the current account in December 1996, removing limits on the use of foreign exchange for trade in goods and services. Restrictions on inflows and outflows of money for investment purposes, or the capital account, mean the currency market is dominated by companies involved in trade. China's foreign-exchange reserves jumped last year, the world's second-largest after those of Japan, driven by exports and foreign direct investment. China isn't manipulating the yuan and trade with the U.S. benefits both nations Goods manufactured in China help U.S. consumers save billions per year, while U.S. companies last year hired 50,000 new workers to help import goods from China. China seemingly won't “bow” to pressure from the U.S. to bring forward its timetable for yuan flexibility. China will follow its “own principles”' on yuan reform and current fluctuations in the exchange rate are appropriate