Fundamental problems in the US economy need to be remedied; potential dangers for both nations loom if renminbi is revaluated

The renminbi exchange rate has once again become a target of the United States Congress. China-bashing, it seems, is back in fashion in the US.

But this latest round of disparagement appears stranger than the last. When the US Congress pressed China for a large currency revaluation in 2004-2005, China's current-account surplus was accelerating. Now China's current-account surplus is shrinking significantly due to the global recession caused by the US financial meltdown.