re: it�s official: china will be dumpin... Hi roygbiv,
The Chinese Xuan is tied to the USD so it moves parallel
to the greenback which maintains China's favourable trading position with Uncle Sam.
Once the Chinese economy develops to a normal mix of imports vs exports (at present it is heavily weighted towards exports by design) then we will see a different picture evolve.
When China feels secure to unpeg its currency we'll likely see a significant appreciation of the Xuan making food imports cheap vis-a-vis where prices are now.Conversely this will make their exports less competitive.
It is quite ironic that China is evolving into a hi-tech
economy before good old Aus when only a few decades ago we regarded it as third world.
In the meantime the US/Chinese battle between US style capitalism and Chinese State Capitalism will continue
and who knows who the victor will be!
Maybe we should learn Manderin as insurance in the interim.
moorookamick
re: it�s official: china will be dumpin... Hi roygbiv,The...
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