Yuan caught in a US political tangle

Even two years after the global financial crisis broke out the world economy shows few signs of a real recovery. In fact, high unemployment rate, decline in economic growth and various other indices indicate the world economy, especially the economy of the United States, is yet to be back on track.

But instead of trying to put its house in order, the US is blaming China for its poor economic performance. On Monday, US President Barack Obama told a meeting organized by CNBC that China had not done enough to revaluate the yuan and that Washington would file complaints with the World Trade Organization against Beijing.

Earlier, despite opposition from within and abroad, the US Congress held two full-committee hearings on China's exchange rate policy to "consider what action Congress and the administration may need to take" and "its effect on the US and global economic recoveries and on US job creation".