A Business Week analysis of China's currency situation concludes that:
"At some point, not
only admonishment from the U.S. and Europeans, but worries over the
prudence of continued massive accumulation of U.S. Treasury securities,
might prompt these (China and other Asian) nations to tolerate further appreciation of their
currencies against the greenback. But ultimately, the first step must
come from China. And amid pressure from trading partners and others to
alter its currency stance, it's likely the Middle Kingdom will chart
its own course as to when -- and by how much -- it will bend."
Read more here.