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Discusses the appreciation of the Chinese yuan in relation to the rapid growth of imports into the U.S. from China, as of April 2004. Percentage of the annual growth rate of imports from China to industrialized countries; Implications of a bilateral trade balance for the Chinese yuan; Factors that influence Chinese imports into the U.S., including estimated coefficients on gross domestic products.

Policies under consideration within the Climate Convention would impose CO2 controls on only a subset of nations. A model of economic growth and emissions, coupled to an analysis of the climate system, is used to explore the consequences of a sample proposal of this type. The results show how economic burdens are likely to be distributed among nations, how carbon "leakage" may counteract the reductions attained, and how policy costs may be influenced by emissions trading. We explore the sensitivity of results to uncertainty in key underlying assumptions, including the influence on economic impacts and on the policy contribution to long-term climate goals.