An interesting article about how China refuses to revalue it's currency, and the effects it will have on US and other countries wanting to trade. This is just another issue recently that has caused a riff between China and the United States.
The Treasury Department is under growing pressure to brand China a currency manipulator in a report to be issued next month. That could open the door to retaliatory measures that could increase the cost of Chinese imports and raise the risk of a trade war between the two nations.
4 comments:
Its good to see China not give into pressure from the U.S. If China's economy is doing well then why do they have to change their policies?
I found this article to be absolutely mind-blowing. I just don't understand how or why the United States feels that Chinese firms and markets should bear the burdens of an inflated currency to relieve economic pressures in the Unites States. It's my belief that United States and its people should be held responsible for their actions. We got ourselves into this mess therefore we should be the ones to get ourselves out of it.
Many are hoping for the Chinese government to let the yuan appreciate against the dollar in order to cut down Chinese exports and help US unemployment, but perhaps more emphasis should be placed on dealing with rebalancing issues
I agree with Tim and Kevin. The problems in China should not be our scapegoat to help ourselves out of the problem we are in. They obviously are doing something right.
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