• Stronger yuan would benefit China by boosting household purchasing power, aid shift towards domestic demand
  • A more market determined yuan exchange rate would allow China to pursue more effective, independent monetary policy
  • China’s dollar peg causing distortions far beyond its borders as other Asian countries intervene in forex
  • More flexible yuan would allow market forces too facilitate more balanced, sustainable global growth
  • Obama administration will “apply forcefully” remedies under U.S. law, WTO, to address China’s unfair trade practices
  • China has pledged to address U.S. concerns about “indigenous innovation” policies
  • Best way to limit Beijing’s use of government procurement preferences is for China to join WTO procurement accord
  • Obama wants China to change policies that disadvantage U.S. firms
  • Want China to provide greater protections for U.S. intellectual property, rely less on exports