http://www.crm-daily.com/story.xhtml?story_id=34689
So, what is Uncle Sam gonna to do ? Play hard balls ?
So, what is Uncle Sam gonna to do ? Play hard balls ?
China's Policy on the Yuen(chinese dollar)
- Thread starter ice_dog
- Start date
bbking said:
"40% off it's true value", how did you calculate that figure, or did you just believed some US politician? I think 10% is a more reasonable figure. China runs a trade surplus with the US, but overall trade surplus with all trading parterners is very small. Even if Chinese Yuen appreciates by 10%, it would not make any difference for US trade deficit number. When Yuen appreciates, the raw materials China imports will get cheaper, it off sets any increase in wages or domestically produced raw materials. Of course, if Chinese Yuen appreciate by 40%, it's a whole different story. China will be ruined, probably for the next few decades. I think that would make some US politician very happy. I applaud the Chinese government for resisting pressure to float its currency. It showed more care for the people of China than those US politician calling for 40% appreciation of the Yuen.
It's hard ball 
I think the Yuen would fall if it was floated, which would make importing raw materials more expensive for China.
There are protectionist sentimants afoot in the US but I think they'll fail in the end.
OTB
I think the Yuen would fall if it was floated, which would make importing raw materials more expensive for China.
There are protectionist sentimants afoot in the US but I think they'll fail in the end.
OTB
When I started this thread, I really meant to say that it looks like U.S, is gonna to play hard balls(such as tariff) with China and things will get messy.
No question that Chinese dollar is under-valued, when you have double-digit GDP growth for so many years and are enjoying trade surplus with U.S. To make a guess, I would say at least 20% plus vs USD.
There are always risks when it comes to investing. In particular,the risk about investing in China is basicaly inherent from its political system, as I said before.
As for onthebottom, you didn't mean that when you said "I think the Yuen would fall if it was floated " ?
No question that Chinese dollar is under-valued, when you have double-digit GDP growth for so many years and are enjoying trade surplus with U.S. To make a guess, I would say at least 20% plus vs USD.
There are always risks when it comes to investing. In particular,the risk about investing in China is basicaly inherent from its political system, as I said before.
As for onthebottom, you didn't mean that when you said "I think the Yuen would fall if it was floated " ?
I realy don't member from which network I heard this(U.S)playing hard balls with China). Maybe it was the Dobbs Report .Could be CNBC, or even PBS.bbking said:
Wel,, this just in:
http://news.yahoo.com/s/ap/textile_cases
and more to come ?
Rather unfortunate for US textile workers, I believe many of them will lose jobs in the coming years. The cause is change of economical structure. US is moving up on value chain, any manufacturing sectors that have to compete with low wages countries such as China will have a tough time ahead.
Maunfacturing job loss in the U.S. due to free trade with lower-wage countries is not really news. It started more than 10 years ago when NAFTA came into place. But the impact of free trade with China is something else, as evidenced by the ever-increasing trade deficit(between U.S, and China) .
The G7, especially U.S. has been hoping China will let its dollar float. Ralph Goodale echoed such sentiment recently. Looks like U.S. is running out of patience.
On a separate note, many high-tech jobs are created in asia instaed of North America. Sun MicroSystems announced recently that it will double its R&D staff at Beijing and hire an addition 1000 software engineers in India. This is a bit off topic.
The G7, especially U.S. has been hoping China will let its dollar float. Ralph Goodale echoed such sentiment recently. Looks like U.S. is running out of patience.
On a separate note, many high-tech jobs are created in asia instaed of North America. Sun MicroSystems announced recently that it will double its R&D staff at Beijing and hire an addition 1000 software engineers in India. This is a bit off topic.
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It is common opinion that the yuan is 20% undervalued. CHina will be pressured to float its currency shortly (via tariffs). The big question is when. They are resisting mostly because their banking system is fragile and undercapitalized.
The Chinese are trying to slow their economy but with little success to date. This is done in order to slow inflation and lessen the need/impact of a yuan revaluation.
The Chinese are trying to slow their economy but with little success to date. This is done in order to slow inflation and lessen the need/impact of a yuan revaluation.
