'The Law Works Itself Pure': The Fragmented Disciplines of Global Trade and Monetary Cooperation, and the Chinese Currency Problem

Abstract

This chapter considers the controversy over the Chinese yuan - the primary unit of account of the Renminbi or “RMB”, the official currency of the People’s Republic of China. The People's Bank of China's (PBC’s) currency valuation interventions have been the subject of international disagreement, not least between the United States and China. Others, such as Brazil, have also drawn critical attention to the issue. But while the problem has arisen in the context of trade and is therefore framed as a trade dispute – be it in terms of “cheap goods” or unlawful subsidization - the larger question concerns the extent to which the issue is addressed by our global rules under the Bretton Woods framework for the regulation of both trade and monetary cooperation.

Keywords: WTO, IMF, China, currency, subsidy, dumping