Mar
15th
Mon
15th
In 1971 the United States dealt with a similar but much less severe problem of foreign undervaluation by imposing a temporary 10 percent surcharge on imports, which was removed a few months later after Germany, Japan and other nations raised the dollar value of their currencies. At this point, its hard to see China changing its policies unless faced with the threat of similar action except that this time the surcharge would have to be much larger, say 25 percent.
