While it is doubtful that such pressure will change any policies in Beijing, it certainly will play well to the domestic audience in the United States. As the prospect of a crushing defeat for the Democrats in mid-term elections becomes more and more real, the Obama administration will consequently start to feel more pressure to play politics in foreign policy. The issue of the yuan is especially pertinent because it speaks to the economic struggles that many Americans are experiencing. Expect the Obama administration to resume its public demands that Beijing allow the yuan to appreciate, even if it lacks the leverage to induce an appreciation.  

Xinhua downplays Geithner’s comments on the yuan, instead choosing to focus on the some of the sunnier aspects of his testimony. 

The China Post points out that Geithner’s comments reflect a subtle change in policy: