Renminbi is convenient scapegoat, not culprit

Even before the start of the eighth Strategic and Economic Dialogue the issue of the renminbi's exchange rate was back on the agenda.

When China's growth model still relied on exports and investment, US allegations of currency manipulation by China topped the list of bilateral concerns in Washington. Before the S&ED meetings, US Treasury officials would threaten to label China a "currency manipulator" in exchange for "greater reforms" (economic initiatives deemed in the US' interests).

China has intensified financial reforms. But in its exchange-rate reforms, it is likely to emulate other Asian economies, such as South Korea - not the US.