Abstract: The political economics can provide a new perspective to explain the phenomenon that U.S. exerts pressure frequently on the issue of RMB exchange rate which is hindering the Sino-US trade. An empirical analysis with the Probit model on the U.S. congress bill of The Currency Reform for Fair Trade Act in 2010 illustrates that the political contributions of the interest groups have intensified the congressmen’s tough policy attitude on the RMB exchange rate issue, also the factors such as Sino-US trade impact, industrial structure and population structure of the state from which the congressmen come have influenced the congressmen’s attitude on RMB exchange rate policy. In conclusion, it is the result of the game based on the relationship of interests between the interest groups, congressmen, constituency, etc. that leads to U.S. exerting pressure on the RMB exchange rate issue.

Key words: RMB exchange rate; political economics; interest group