On Thursday, US Secretary of Treasury Timothy Geithner expressed concern China is manipulating its currency, as senators from both parties expressed impatience with the Obama administration’s reliance on negotiation with Beijing, saying so far it has yielded few gains.
Asia Society Executive Vice President Jamie Metzl, appearing on Bloomberg TV, said that the Chinese are likely to loosen their grip on the yuan if the US and its allies in Europe and Japan put pressure on them.
"Everyone knows China is controlling, but political pressure on the Obama administration will be so strong that Capitol Hill will have to do something about it," said Metzl.
Despite China's control of the global economy at the moment, Metzl is hopeful for the two powers.
"In spite of decoupling the Asian and American economies, the two economies are enormously dependent on one another."