ABSTRACT
The US Treasury has made a concerted effort to point out exchange rate issues in a bilateral fashion including the aforementioned annual US––China Strategic and Economic Dialogue and in in-depth discussions at conferences of the G7 and G20 in concert with the International Monetary Fund. On April 29, 2016 the US Treasury Department issued a report to Congress entitled: "Foreign Exchange Policies of Major Trading Partners". The report targets five countries in particular: China, Japan, South Korea, Taiwan and Germany. China had an extremely large trade surplus with the West. China uses a fixed exchange rate as opposed to an exchange rate system, example Forex or FX. China's exports to the West consist mainly of consumer electronics, textiles and machinery. China's currency strength is derived from its exports to the United States and the European Union. The yuan plays an essential role in maintaining China's economic competition throughout the world.
