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Thread: Rise of RMB, bad or good?
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[quote=APAULT,36048]Yes, The RMB is undervalued. The 5 or 6 % rise May mentions is but a small proportion of what it 'should be'. So the foreign workers getting paid in RMB will not benefit all that much. The USA wants a big revaluation because the current rate is 'unfair'. China is gaining an export advantage and an import disadvantage. And for the USA and other countries, the opposite is true. The result is that China has big trade surpluses....great for covering potential tougher times ahead, great for stopping too much importing before China has had a chance to develop its industries to compete in the long term. On the other hand it is stopping people having quite so much wealth now.... but that's not really any different from saving money from what we earn....and many Chinese are choosing to do just that as they are also concerned to save for a possibly tougher future. If the USA is upset because of the 'unfair' advantage of an undervalued RMB...tough sh.t! They have so many illegal trade practices (eg subsidies, import restrictions, foreign investment restrictions) they don't have a moral leg to stand on! The land of the market econonmy? Only when it suits them.[/quote]
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