US-- Victims of Sharp RMB appreciation

US-- Victims of Sharp RMB appreciation
Sep 22, 2007 02:36
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	Americans have been used to buying cheap Chinese products, but recently they have noticed some unpleasant changes. In US, the average price index for Chinese imports has increased by 0.6 in June. "Most Americans will naturally attribute the price increase of Chinese imports to the price hikes in China. However, this is not the case. Many people fail to notice that the price increase of Chinese commodities is actually the result of the appreciation of the Chinese currency." Fu Yong, from the China Center For Economic Research of Fudan University, noted in Shanghai Securities News that the United States should prepare to pay the price as a result of inflationary pressure caused by the sharp renminbi appreciation. The appreaciation of RMB is good for US economy or bad? Is the appreciation a bad thing for China? What do you think?

Sep 22, 2007 02:36

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: offline

Americans have been used to buying cheap Chinese products, but recently they have noticed some unpleasant changes. In US, the average price index for Chinese imports has increased by 0.6 in June.

"Most Americans will naturally attribute the price increase of Chinese imports to the price hikes in China. However, this is not the case. Many people fail to notice that the price increase of Chinese commodities is actually the result of the appreciation of the Chinese currency." Fu Yong, from the China Center For Economic Research of Fudan University, noted in Shanghai Securities News that the United States should prepare to pay the price as a result of inflationary pressure caused by the sharp renminbi appreciation.

The appreaciation of RMB is good for US economy or bad? Is the appreciation a bad thing for China? What do you think?

Sep 24, 2007 03:52	#1
DREAMLIFE Points: Join Date: Sep 5, 2007 Status: Offline	For a long time, China has earned great trade surplus over US. To change this situation, US has tried many ways. To force RMB appreciation is one of their ways. By this, China's exports will be decreased. Thus, US will burden less loss in the Sino-US trade. In this aspect, it is good for US. For Chinese side, the rapid appreciation of RMB is not good.

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