China-U.S. Currency Situation: CNBC Explains

The China-U.S. Currency Situation (Part II): CNBC Explains

China's undervalued currency has very serious implications for its trade with the United States. We take a look at the larger issue with Salman Khan of the Khan Academy.

The China-U.S. Currency Situation: CNBC Explains

As we have seen in previous videos, China's undervalued currency has serious implications for trade with the United States. But what is the big picture? Salman Khan of the Khan Academy explains.

As we have seen in previous videos, China’s undervalued currency has serious implications for trade with the United States. But what is the big picture? Salman Khan of the Khan Academy explains what China's currency situation means for U.S. consumption and how it affects the entire U.S. and global economies.

From this first video, you’ll understand:

• How U.S. consumption is affected by China’s currency peg
• What China does with its artificial demand for dollars

From this second video, you'll understand:

• How the Chinese exchange rate broadly affects the U.S.
• The likely beneficiaries of a stronger Yuan