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The article reflects a consensus view of the trade situation between US and China. Personally I see it differently : China has been willing to make and ship trillions of dollars’ worth of goods to US in return for entries in a computer (Treasury bonds). This is undoubtedly good for US consumers, as you say.


The currency peg to the dollar would be strategic, for example, if China benefits from technology transfer and increased demand for domestic employment.


For the first question, in order to buy US assets, China sells yuan and buys dollars, which it can then use to purchase US assets (typically Treasuries). That increases the supply of yuan/demand for dollars simultaneously, which drives down the value of the yuan relative to the dollar. For the second question, you're right, it does make buying Chinese goods ...


No, for several reasons. WTO deals with trade disputes between nations when one nation creates legislature that breaks WTO rules or some pre-existing trade agreement. For example, one of the most important WTO rules is the most favored nation principle which says that (WTO, 2020): countries cannot normally discriminate between their trading partners. Grant ...

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