OnePlus 5 review
Some members of China’s Politburo think the United States is in decline. China has warned the United States, it would come off worst in a Trade War. The United States for its part, has accused China of being a "currency manipulator", which could result in the possibility of triggering sanctions under US law.
The mood is hardening on both sides of the Pacific. The dispute risks escalating if China's trade surplus with the US climbs further and more US jobs are lost.
We live in turbulent times, anything could happen.
I've been banging away about how China will one day outstrip all other nations in terms of its trading capacity. The Chinese government has consistently intervened to keep the value of its currency low against the dollar.
It should come as no surprise - China has to find foreign markets for its industrial output if it is to continue to grow its economy, and one way to help is by ensuring that Chinese goods are attractively cheap to American buyers.
The Chinese government would do well to remember that it fought for 15 years to get China into the World Trade Organisation, and when that finally happened (in 2001) there was much jubilation in Beijing. Member states are bound by a comprehensive set of rules, and manipulating a currency to create an unfair trading climate is definitely not on.
We'll hear more of this over the coming months.
I don't disagree with anything FE has said, although it's worth noting that China discontinued the pegging of the yuan to the dollar in June this year. This allowed the yuan to revalue slightly against the dollar.
Too late for all that
British manufacturing decamped to China 10 years ago
What's left is now muchly owned by India
You go to Argos or Currys and much of the stuff with British brand names on the front says "Made in China" on the back or underneath
China has made a tiny move towards revaluing the currency against the dollar and will no doubt make more (tiny) moves to keep it's nose clean
In the meanwhile be aware it's started buying gold instead of investing in dollars
The time to have got hold of it all was when it started selling Windows for peanuts. Too late now
And what about the world wide web and Google in China?
What was the phrase? The sleeping tiger/dragon?
Although China pledged in June 2010 to allow a more flexible exchange rate against the U.S. dollar, the Yuan has only risen about 1% since then. China spends an estimated $1 billion a day to keep its renminbi more or less pegged to the dollar.
... food aid shipments to the Chinese ?
Have you noticed that despite lower manufacturing costs these goods are still no cheaper to the British public.
'currency manipulator' ? What was the phrase ? Something about a pot & kettle ( bet they are now made in China ).
Too late for all what?
China is Europe's biggest source of manufactured goods, around €250 billion a year, and the Chinese will do everything they can to hang onto/increase that volume, including a little currency manipulation.
The Chinese import volume has decreased over the past 18 months, due to economic circumstances, and that will be worrying a Chinese government desperate for foreign market share. Holding the currency low is a big temptation, and the WTO will be watching carefully.
They really should make history compulsory at school.
China is just the latest "workshop of the world", all you need is a very cheap labour force and good transport links.
The UK started the trend with the industrial revolution, until too many workers wanted to own what they produced and production costs rose.
Nowadays the cycle happens quicker than ever, no doubt due to better communications. Making it hard to maintain the necessary compliant work force. I predict that China will lose its "workshop of the world" title within a decade, losing it to a cheaper work force.
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