china Options

[innovation]

how much of a "threat" is the newly powerful china? what policy should america develop toward the nation?

also...
can someone explain to me the implications of "revaluating" currency?
why do so many people want china to "revaluate" the yuan? thanks.

[zepfel]

i'm unaware of this. would you care to elaborate?

[Paradox of Life]

i'm unaware of this. would you care to elaborate?

Ditto.

[illumineering]

Internationally, the value of the yuan is relatively low, about 8.3 to 1 US dollar. That means it's cheaper to produce goods in China than it is in the US or Europe. With low interest rates, and stable value, that will increase consumer spending in China. For a nation that had traditionally purchased more goods than it has sold, that is a positive change from the Chinese perspective.

This condition will begin to change the traditional trade imbalance because the low yuan value will encourage the purchase of Chinese goods by other nations. This is an overall boost to an economy that has never been able to influence international markets. The stable and consistent value of the yuan and low inflation can encourage an influx of capital investment and jobs as well. (for the Chinese)

From the European and US perspectives, they cannot compete with this advantage that China now has. The easiest way to do it is to change the value of the currency so it more in line with the euro and dollar, thus making the cots of goods more even.

The "threat" can be summarized as being China can radically influence economic and trade policy, draw new investments in infrastructure, attract jobs from other countries and become a major global power.

[*CrackedRearView*]

The "threat" can be summarized as being China can radically influence economic and trade policy, draw new investments in infrastructure, attract jobs from other countries and become a major global power.

However, until they can deal with their social issues, their lackluster influence in the UN Security Council, their humanitarian crisis, and their population, such a threat is distant and unlikely to develop.

[illumineering]

However, until they can deal with their social issues, their lackluster influence in the UN Security Council, their humanitarian crisis, and their population, such a threat is distant and unlikely to develop.

I hope you're right.

[ComradeRed]

how much of a "threat" is the newly powerful china? what policy should america develop toward the nation?

also...
can someone explain to me the implications of "revaluating" currency?
why do so many people want china to "revaluate" the yuan? thanks.

Revaluing a currency means allowing the price to float on the free market, based on trade and speculation (so the higher the demand for RMB goes, the more it will be worth). There are good arguments on both sides. Basically, if China revaluates its currency, the trade deficit with the United States will shrink, because, as more people buy Chinese goods, the demand for RMB goes up, but this also drivers the price of RMB up, which makes Chinsee goods more expensive, discouraging more people from buying them. So a floating currency basically prevents massive trade imbalances. The disadvantage is the risk of speculation, of course.

[Retrogressive]

China and Canada have also signed an oil agreement which will definitely hurt the US because our reletionship with Canada has completely gone downhill because of petty trading sqaubbles.

[medic]

Internationally, the value of the yuan is relatively low, about 8.3 to 1 US dollar. That means it's cheaper to produce goods in China than it is in the US or Europe. With low interest rates, and stable value, that will increase consumer spending in China. For a nation that had traditionally purchased more goods than it has sold, that is a positive change from the Chinese perspective.

This condition will begin to change the traditional trade imbalance because the low yuan value will encourage the purchase of Chinese goods by other nations. This is an overall boost to an economy that has never been able to influence international markets. The stable and consistent value of the yuan and low inflation can encourage an influx of capital investment and jobs as well. (for the Chinese)

From the European and US perspectives, they cannot compete with this advantage that China now has. The easiest way to do it is to change the value of the currency so it more in line with the euro and dollar, thus making the cots of goods more even.

The "threat" can be summarized as being China can radically influence economic and trade policy, draw new investments in infrastructure, attract jobs from other countries and become a major global power.

One bad thing about China though is that it is a Communist County, a company does not want the reputation of supporting communism. That's why you see more goods being shipped from Malaysia and so on. The yuan itself is no threat to US economy, all it will do is raise the price of importing from China, it use to be if I looked on the back of anything in my house it would of most likely been made on China. That has changed.

[illumineering]

One bad thing about China though is that it is a Communist County, a company does not want the reputation of supporting communism. That's why you see more goods being shipped from Malaysia and so on. The yuan itself is no threat to US economy, all it will do is raise the price of importing from China, it use to be if I looked on the back of anything in my house it would of most likely been made on China. That has changed.

Your statements concerning the cost of Chinese imports are not accurate. The value of the yuan makes Chinese goods cheaper and a better value than US or European goods. Actually, the G8 are pressuring China to revalue their currency because of the increased economic power China is gaining.

Your personal purchases do not reflect a global, national or local trend. Where are your sources of information? It sounds like you are asserting your personal opinion as fact. Your claims need to be demonstrated statistically in order to have merit.

Here's a link to an article that discusses the investments 11 Fortune 500 compaines have made in China.

http://www2.chinadaily.com.cn/english/doc/...tent_442378.htm

This article is one of thousands that invalidate your assertion of non-involvement with China. Google Fortune 500 companies in China before you make any more unsubstantiated assertions.

You can also Google international or multinational corporations in China.

The international option generates 3.59 million results.
The multinational option generates 639,000 results.

I might suggest you read the first 2 pages of each search query in order to familiarize youself with some relevant background information related to this thread.

[sadolakced acid]

companies usually don't want to be seen as supporting terrorism, but haliburton seems perfectly willing to pour government cash into sending people into the hands of terroists who behead them.

i think the communism thing isn't much a deterrant to coporations going there. do you know many people who refuse to buy made in china goods?

[ComradeRed]

Well it isnt a deterrent for buyinmg goods, but if you know that the government might seize your investment at any time it adds a risk factor and might deter you from long term investments there.

[sadolakced acid]

that's a risk that every investment has. build a factory anywhere and you have natrual disaster risks- just add in it being seized. If you can make up the cost of the factory within 3 or 4 years, it's a pretty justifiably risk.

[yellowgurl]

what policy should america develop toward the nation?

thats what i was wondering about..

The easiest way to do it is to change the value of the currency so it more in line with the euro and dollar, thus making the cots of goods more even.

so.. if a policy should develop i think it should run along the lines of changing the value of currency to make it more even.

[ComradeRed]

that's a risk that every investment has.  build a factory anywhere and you have natrual disaster risks- just add in it being seized.  If you can make up the cost of the factory within 3 or 4 years, it's a pretty justifiably risk.

The natural disaster risk is TINY compared to the risk of it being seized in a country with loose eminent domain laws

Also, for whoever said that Chinese goods are a better deal because of the value of the yuan, is only half true. If the yuan is revalued, Chinese goods will still be a better deal, but it will be because of the actual difference in the costs of production, not the valuation of the currency. It won't be as good of a deal, but it will still be a good deal.

[napoleon034]

we're allies with them...we buy from them, they sell to us. we are deomcratic, they are communist...so?

people, this isnt the ussr anymore.

[*mipadi*]

we're allies with them...we buy from them, they sell to us. we are deomcratic, they are communist...so?

people, this isnt the ussr anymore.

Um...what?

China...ally...USSR?

[napoleon034]

Um...what?

China...ally...USSR?

No.

We're allies with China. I was refering as a metaphor that we are treating China like it is the USSR.

[*mipadi*]

No.

We're allies with China.  I was refering as a metaphor that we are treating China like it is the USSR.

We're not really allies with China, nor are we enemies. We're neutral. Much of that is because the US neither rejects the independence of Taiwan (one of China's prerequisites for being "allies"), nor do we recongize their independence. We also recognize them as a trading partner, yet criticize them for human rights (sometimes, when it benefits us).

Information regarding this can be found here:

• Sino-American relations
• US-China spy plane incident

[sadolakced acid]

The natural disaster risk is TINY compared to the risk of it being seized in a country with loose eminent domain laws

Also, for whoever said that Chinese goods are a better deal because of the value of the yuan, is only half true. If the yuan is revalued, Chinese goods will still be a better deal, but it will be because of the actual difference in the costs of production, not the valuation of the currency. It won't be as good of a deal, but it will still be a good deal.

much bigger risk, but companies are willing to take it, cus you save money on labor

[ComradeRed]

They are, but that also means they expect a slightly higher payoff. So if labor costs go up to the point where they are only a little lower than in America, then companies would rather do business in America.

[sadolakced acid]

^ ahh, but will they go up, that is the question. I believe they won't, as china's population is so large the turnover from agrarian to industrial won't occur very quickly. and while they still have agrarian, there will still be poor people. They can also lift child limits, and thus keep a decently cheap labor force.

[ComradeRed]

If the currency is revalued and allowed to float, then costs of production will go up as that country's economy improves.

[napoleon034]

We're not really allies with China, nor are we enemies. We're neutral. Much of that is because the US neither rejects the independence of Taiwan (one of China's prerequisites for being "allies"), nor do we recongize their independence. We also recognize them as a trading partner, yet criticize them for human rights (sometimes, when it benefits us).

Information regarding this can be found here:

• Sino-American relations
  
• US-China spy plane incident

ok, if china is neutral, then so is russia, correct?

i consider any country who's leader can walk freely in our country to be our ally, call me an optimist.

[*mipadi*]

What does Russia have to do with anything?

[zepfel]

What does Russia have to do with anything?

russia has to do with lots of things. but i agree, not this.

[PinkTrash]

cost of production in china - big problem.
Isn't US coming up with a policy about bringing in china goods? yeah, it'll burn up production companies everywhere; Why produce something in US when China can produce it for less than half of that? probably a main reason why China's a threat economically.. Unemployment rates are going up in Canada {dont know about US, Im canadian*} in textile production because of this, my parents are all involved & stuff.
Currency has something to do with it too, I just can't think of the reason right now - it was all over the news a while ago thoe =/

[lanbexx]

No.

We're allies with China.  I was refering as a metaphor that we are treating China like it is the USSR.

no we're not really allies with china. the US has such a high dependence on chinese "soft goods" (consumer goods as opposed to industrial) that the US is quite bound to china. and about all the jobs moving back if the yuan goes up. everything will skyrocket in price. the 15 dollar shirts at sears will go up to like 30-40.

US also has the prob about jobs going to China. US wants to try to stop it, yet they were the ones that pressured to join the WTO. says something of the US. take the Unocal sale. Chevron (i think...) offered a bid. A chinese company offered a bid. chevron took a "dont finance china. theyre taking away all our jobs" stance and won the bid, even tho china offered a higher bid. if the US supports a global market, why did the Congress even attempt to have a bill blocking the sale to china? personally, much of the US needs to look at itself before pointing fingers at other nations

problem for US is that China is too much of a global superpower for the US to contend with. in someways, its more powerful to the US. many of the North American and European markets are very connected to China. combine that with no powerful US allies in asia plus a very strong russia china N Korea bond, and the us really has some problems when dealing with china.

china is more of a socialist country than communist now.

and i THINK the US did acknowledge taiwan's independence (which is personally think is BS) and i know the us promised to help out taiwan if they are attacked by china (which is a stupid promise).