U.S. companies have criticized for years the Chinese currency policy, which gives to Chinese companies an unfair price advantage on the global market. Beijing managed to resist the international pressure and continues to maintain its exchange rate policy an internal matter.

Recently, the President Obama stated that U.S. must address currency rates with all important trading partners most of all with China. Obama administration is pressing on China and other countries to reinforce trading rules and to mutually open their markets. Obama said that U.S. must make sure that the price of American goods is not artificially inflated and the prices of trading partners’ goods are not artificially deflated.

A report made by Peterson Institute for International Economics estimated that the China’s currency, the Yuan, is 30% under evaluated against all other world currencies, but against the dollar, is undervalued with 40%. Other East Asian economies like Hong Kong, Malaysia, Taiwan and Singapore should also let their currencies to increase in order to correct the imbalance in the global trade.

Obama wants to keep a close economical relation with China, hoping that in the close future, Asia will be one of the biggest U.S. markets, especially China. The main goal of Obama administration regarding economical relations with China is to ensure a reciprocal markets opening.