In Newsweek, columnist Robert Samuelson says there's an urgent need for a "rebalancing of the global economy." What's needed, according to Samuelson, is a "sizable revaluation of China's currency":

Fred Bergsten of the Peterson Institute thinks the renminbi may be 40 percent undervalued against the dollar. This gives China's exports a huge advantage and underpins its trade surpluses. Other Asian countries fear altering their currencies if China doesn't change first. "They'll lose ground to China," notes Hensley. The European Union, Brazil, and India all feel threatened by the renminbi. President Obama wants U.S. exports to double in five years. That's probably unrealistic, but it's impossible if the renminbi isn't revalued.

Samuelson quotes AAM Executive Director Scott Paul, who points out that revaluing China's currency is the "single most important tool we have to increase exports and decrease imports." Read the full article.