G-20 refuses to back US push on China's currency

[Chinese-Dragon]

China wants to dominate the trade by sustaining an Export based Economy.. Thus limiting the Developing countries to Grow by capturing there Exports by making its own more competitive through Devaluation of its currency.

The world is a place of competition. If others want to compete with us, then they should go ahead and do it.

"Complaining" is just a pointless and futile exercise.

China's position is the same, we will revalue the Yuan upwards, and we will do it SLOWLY. That way, our industries will be protected from any shocks.

 

[H2O3C4Nitrogen]

The world is a place of competition. If others want to compete with us, then they should go ahead and do it.

"Complaining" is just a pointless and futile exercise.

China's position is the same, we will revalue the Yuan upwards, and we will do it SLOWLY. That way, our industries will be protected from any shocks.

But some critics say China is not willing to do that ... !!

 

[huzihaidao12]

This is a competition, a fair environment, we put a hard work, we get the current position. The currency of each country playing the game, not just China. Not to mention China's development provides a better price and market to developing countries resources , we also help develop infrastructure in developing countries. Need to be reminded, China has begun to transfer some excess production lines to developing countries, we are upgrading to more industries.

 

[huzihaidao12]

But some critics say China is not willing to do that ... !!

Tell them to shut up, go to the fact that we have been slow growth.

 

[H2O3C4Nitrogen]

This is a competition, a fair environment, we put a hard work, we get the current position. The currency of each country playing the game, not just China. Not to mention China's development provides a better price and market to developing countries resources , we also help develop infrastructure in developing countries. Need to be reminded, China has begun to transfer some excess production lines to developing countries, we are upgrading to more industries.

But if thats true then what is the reason why Chinese Gov is resisting the increase in its Yuan Value. Frankly i am not just saying for China infact some of the other counteries like Japan and Brazil are also doing the same and are giving petty reasons for that.Through out the 90s Japan has not essentially increased its value of currency . Currently a global trade war is going on.

I ask you one thing If China continues to face the pressure its facing for devaluing its currency then Is there any possibility that China may consider taking other measures like taking some kind of Military Actions or cutting down some of the exports of rare Earth Minerals against its competitors like Japan to facilitate its Exports. After all China isnt yet into a Market Based Economy , The Exports are the main driving factor of the Mighty Chinese Economy.. ??

 

[huzihaidao12]

But if thats true then what is the reason why Chinese Gov is resisting the increase in its Yuan Value. Frankly i am not just saying for China infact some of the other counteries like Japan and Brazil are also doing the same and are giving petty reasons for that.Through out the 90s Japan has not essentially increased its value of currency . Currently a global trade war is going on.

We do not stop, but US ask us to add at least 40% in the short term, then we can not agree. Our currency has maintained growth in the past 20 years, only slowly, we will certainly keep growing, low currency value does not meet our long-term interests. But the speed depends on us. In fact, every country in the manipulation of currencies, including the United States, Japan, Southeast Asian countries, so it is not surprising.

I ask you one thing If China continues to face the pressure its facing for devaluing its currency then Is there any possibility that China may consider taking other measures like taking some kind of Military Actions or cutting down some of the exports of rare Earth Minerals against its competitors like Japan to facilitate its Exports. After all China isnt yet into a Market Based Economy , The Exports are the main driving factor of the Mighty Chinese Economy.. ??

Too many errors

1, China will not take military action unless attacked, I was surprised that what you are thinking ?

2, reduce the earth not because of the currency, it is our long-term approach, too cheap production, but there is a serious pollution.

3, China's growth depends on exports is a misunderstanding, our growth from domestic demand and investment.


http://www.nytimes.com/2010/03/20/opinion/20iht-edbottelier.html

 

[huzihaidao12]

BTW China is a market economy than the United States.

 

[indushek]

I have read an interesting article on why India is not backing the US move, according to the author India already has a trade deficit with China and the appreciation of renminbi will adversely effect us and the deficit would grow even further.

What is the reason other G-20 nations are not supporting US move?? Do all these nations have trade deficit with China or is there some other underlying reason. If some economics specialists could post reply it would be helpful and appreciated.

 

[oct605032048]

I have read an interesting article on why India is not backing the US move, according to the author India already has a trade deficit with China and the appreciation of renminbi will adversely effect us and the deficit would grow even further.

What is the reason other G-20 nations are not supporting US move?? Do all these nations have trade deficit with China or is there some other underlying reason. If some economics specialists could post reply it would be helpful and appreciated.

Why? I'll tell you.

In the global economic arena, it is 'emerging markets' versus 'developed countries'.

If the latter, lead by US, get what they want on China, the Most Valuable Player in the team of 'emerging markets', this time they gonna do the same thing to India, Brazil, Indonisia, Thailand, Pakistan etc. in the future. Just remember Copenhagen last year.

Developing countries must stand firm and work together for a more fair world for most people who is not living in the OECD countries and earning $40K a year.

 

[AZADPAKISTAN2009]

OBAMA is stupid on one side he tells India to keep taking away jobs for americans on other side he cries some how its China's fault

Buddy go fix your own country first don't blame China

 

[Jade]

In short run the cheaper yuan is certainly beneficial to Chinese economy; however in long run it could suppress the development of Chinese own consumer market, in turn making Chinese economy export driven one.

However, it is doubly dangerous if China immediately decouple the yuan from the dollar as demanded by Obama. It will soar interest rates there by adding more woes to already battered global economy. An incremental move toward freeing yuan is a possible way forward as it will result in adjustments to both US and Chinese economies without shocking the global financial system.

 

[oct605032048]

People always suffer from Titan's war, hope it is an exception this time.

 

[no_name]

So far you only seem to see US complaining to China about currency evaluation but not other western countries. If Obama really believes china is the problem we should just cut trade between china and US and see if the situation gets better. There is not as much chinese export to US as many believed.

 

[Chinese-Dragon]

So far you only seem to see US complaining to China about currency evaluation but not other western countries. If Obama really believes china is the problem we should just cut trade between china and US and see if the situation gets better. There is not as much chinese export to US as many believed.

That's true, exports to America only count for 0.5% of Chinese GDP growth.

 

[true_indian]

Logic is simple.. Developing countries are dependent on China for cheaper products... Most other developing countries doesn't have sophisticated manufacturing technology like China's and it would take decades to build up one..On the other hand US has all the technology except for cheap labor..So yuan increase would make their products comparable so greater advantage..