| How do you think of the appreciation of RMB? | |
|---|---|
| May 28, 2007 01:19 |   |
 | Since the Fixed Exchange Rate Reform, the appreciation of RMB has increased 5.94%. And it is estimated that the appreciation of RMB may speed up this week and the currency was 7.6523 against US dollar on last friday up from 7.6683. Analysts expected the currency to settle below 7.5 by the end of this year. Although the appreciation of RMB speeds up quickly, US is still dissatisfied with it and require higher appreciation to settle the Sino-US trade imbalance. Actually if the appreciation of RMB speeds up too quikly, it will bring more harms to Chinese enterprises, for example, the decrease of exports. More seriously, China economy will be affected. Any comments on this? Glad to hear your voice. |
| May 28, 2007 04:38 | #1 |
| Chinese can buy imported things with less money~~~ |
| May 28, 2007 20:06 | #2 |
| Yes. But much imports are not good for China. This problem is complicated. |
| May 29, 2007 03:46 | #3 |
| WTO is the last thing to be called equitableness. It's just the rules of developed countries. Sadly, we should follow their rules, otherwise, we will not be accepted. |
| May 30, 2007 10:24 | #4 |
| Yes it is complicated..and I agree with all the points made here. We must remember that the USas saying what is good for them, naturally. But it totally ignores the many places it is breaching internation free market agreements... it subsidises so many industries one way or another. The USA and Europe despite all tehir talk of free trade are massive market manipulators. China is a developing country and cannot afford to have sudden changes that could cause many types or industry to suffer, so the governement's slowly, slowly approach is right to me. The undervalued RMB has aided exports and hindered imports and so given China a chance to 'take off'. It has also enabled China to build up massive reserves of foreign currency, while the USA in in massive debt. China is needs savings, that is a good cautious approach in case the economy slows and it also allows it to invest overseas, so spreading the risk. We have all the foreign businesses investing in China to make big profits, and this balances things out a bit. The USA has mismanaged its affairs spending vast sums on foreign involvements over many decades and is now worried about this and wants to blame China. All in all, China is on the right path, a steady move towards a full market economy, domestically and internationally (hopefully achieveing a harmonious society in the process...yeah, maybe!) (Harmonious society is an interesting slogan and in theory policy, which students are often required to debate) |
| May 30, 2007 20:47 | #5 |
| Good analysis. Paul, you know "build a harmonious society"? Many foreigners are confused by those political terms. Great! "It has also enabled China to build up massive reserves of foreign currency". Yes, paul. China has built up massive reserves of foreign exchanges. But it is also a problem. How does China deal with them? It is reported that the government has established an department to focus on utilizing those huge amounts of money. Hope they can bring positive results. |
| May 31, 2007 01:07 | #6 |
| Well analyzed Paul. The 'free market' thing and even economics as a discipline is pretty much defined and developed by the US, they push it as and when they need it, and where they can't afford to have it they just act like the rule simply does not apply there. China is coping and I'm rather glad. |
| Jun 2, 2007 11:13 | #7 |
| I don't think the reserves are really a problem. Sure it is an imbalance inthe world system, but it is just one of many. Saudi Arabia is/was in the same situation. China like the Saudis is choosing to invest overseas, which offsets some of the foreign ownership inside China. Also the money is available should the chinese economy falter - it can be used Keynsian style to keep the Chinese economy going |
| Jun 3, 2007 20:26 | #8 |
| Yes,Paul. China has established the State Investment Company to properly utilise the foreign exchange reserve. It shows that China has attached much importance on this. |
| Jun 6, 2007 20:11 | #9 |
| Zoey, The RMB, from a foreigner's perspective, is a great investment. As the U.S.-China trade deficit continues to widen ($232.55 BILLION dollars in 2006 alone) China's power and influence as a world-economic giant becomes more and more obvious. But the toll that this rampart surge has taken on China's environment is tremendous. China will need to import technologies to improve air, water and health quality for the overworked, underpaid and environmentally-assaulted Chinese people. Perhaps this is how the U.S.A. will repay what amounts to an entire "mountain range" of debt. Please read: http://www.latimes.com/ As I type this little blog, outside my window in Weixing, Yunnan, the toxic chemicals of somebody burning fiberglass wafts through my closed windows. Pollution and people can coexist, but only to a limited extent. In the long tun, no amount of money can be good health and a clean environment. __WINDENERGY__ |
| Jun 6, 2007 20:58 | #10 |
| Yes, Windenergy. China's development is at the expense of the environment. Environment pollution is a serious problem. Economic development causes serious environmental problems. |
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