Hard Choices on U.S.-China Trade

It's easy to blame the weak yuan for the huge U.S. current account deficit, but the McKinsey Global Institute says it's not the real problem

As it raced to begin its summer recess, the U.S. Congress seemed determined to take some sort of action to punish China for allegedly manipulating its currency. Only a stronger yuan, says the conventional wisdom on Capitol Hill, will allow the U.S. to balance its growing current account deficit, which reached a record $857 billion last year.

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