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.

[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.

[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.