Centrum Stosunków Międzynarodowych - 02 June 2016: The U.S. and China are seeing economic tensions flare to their worst point in years over currency and trade practices

The U.S. and China, facing mounting political pressures at home, are seeing economic tensions flare to their worst point in years over currency and trade practices. Yuan achieved its minimum against the US dollar for the last 5 years. American enterprises accuse China on currency manipulation for the sake of a competitive advantage of Chinese goods. Domestic politics in both countries collide with already weak growth, what could escalate existing tension between the world’s two largest economies. The United States want China to implement promised policies to open up its markets and allow greater international investment.

In its turn, China worries about a deeper economic downturn and tries to keep factories humming and prevent the kind of market unrest that gripped global investors over the past year.

The representatives of United States will fly to Beijing next week for two days of talks to try to calm some trade and geopolitical tensions particularly over the South China Sea, where U.S. militaries sometimes work in the dangerous environment.