RMB Appreciation Boosts US Current Account Surplus, Fuels FDI Inflows
The study looked at how changes in the exchange rate between the Chinese RMB and the US dollar affect the balance of payments between the two countries. They found that when the RMB appreciates, it has a negative impact on Chinese exports to the US but doesn't affect US imports from China much. Additionally, the RMB appreciation doesn't help balance the capital account between China and the US, and it actually leads to more foreign investment flowing into China from the US.