Business

China likely to keep low yuan.
by Milota Sidorova

China has become the largest world manufacturer, this is the fact. And because of cheap labor and ability to fulfill tough deadlines it has became more than a strong rival. Because of Chinese made products, domestic (American, European) factories were shutting down. Strange relationship has been created – the world has become dependent on Chinese products as China has become dependent on export. This smells of monopoly, but one can't help not expecting the consequences of this world defining situation. China that has a specific policy, typical by strong auto-regulative mechanisms and autocratic mode that was and still is able to keep its independency as it comes to it! s economy decisions. Literally, it was not taking any measure against its own profit.Being the strongest player in the game means the right to ignore the warnings and objections of weaker ones. And that is what is China doing. From the beginning of the crisis, it kept its yuan on extremely low value. The gap in the currency caused more than a big trouble to foreign exporters, Chinese goods were cheaper, but Chinese businessmen kept making money. This profit became the sore on the eye of European and American traders and it's been several months they were calling for “fair-play”conditions. With the rising pressure, it seemed they reached the goal, but now as China post $7.2 billion deficit in its exports in March, Chinese government has another reason to lower yuan on the original level. This step is more than probable at least for some another period. So currently it is 2:1 victory for China.

related story (sgx16970): http://www.france24.com/en/20100410-china-economy-trade-post...

by Milota Sidorova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

posted by Blog TechSource @ 3:37 PM