JEAIL > Volume 7(1); 2014 > Regional Focus & Controversies
Research Paper
Published online: May 30, 2014

Japan's Unspoken Currency Manipulation by Monetary Policies: A Chinese Lawyer's Perspective

Xin Chen
Xiamen University Faculty of Law, China
Xiamen University, Faculty of Law, 422 South Siming Road, Xiamen, China, 361005.
Corresponding Author:

ⓒ Copyright YIJUN Institute of International Law
This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.


During the past few years, the Bank of Japan has injected billions of yen into the economy and pursued a monetary easing policy. Japan has plausible arguments, namely that its current policies are needed to support the growth of the economy and to spur inflation. However, these measures result in a weakened yen and increase trade imbalances between Japan and other Asian countries, particularly China. This article argues that Japan's practice is rooted in protectionism and examines such actions under the IMF Agreement and the WTO system. It is suggested that the Chinese government should adopt diplomatic and judicial approaches to urge Japan to return to normal monetary policies.

Keywords : Devaluation, Yen, Quantitative Easing Policies, Exchange Rates Manipulation, IMF, WTO

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