The imbroglio between the US and China refuses to die down with the Western big-wig saying that it needs to see more flexibility incorporated into the Yuan.

After a decade of pegging the value of the Yuan to the US dollar, the Chinese have shown signs of some flexibility and made the announcement that the Yuan's value would rise immediately by 2.1 percent against the dollar, going from 8.28 Yuan to $1 to 8.11 Yuan.

What surprised me as also the international community was the fact that since then the Yuan's value against the dollar has been essentially unchanged. US manufacturers now allege that China undervalues its currency, giving its producers an unfair trade advantage.

With China not revaluing its currency over the past 10 weeks, it is indeed disappointing and this lack of greater flexibility almost amounts to currency manipulation.

If this trend continues I fear the US might impose 27.5 percent across-the-board tariffs on Chinese imports into the United States as a way of equalizing the advantage China enjoys from an undervalued currency. This could indeed hurt the Asian giant. But I feel the US sees no other alternative to support its business community.

I really hope that both the countries come to some compromise. And China too should now leave the market forces to determine the currency value.