Sorry, I did not think this up or invent it. China said it will hold its currency during this what is so called Asian Financial crisis, and which started in Thailand about
14 months ago, which is last may when Tai's currency was attacked by foreign speculators.To devaluate your currency means put your national resources on sale, and it is not good for the country from a long term point of view, and China knew that. Besides, China imported a lot of natural resources from S.E Asia, example: woods from Indianisia, Beef from Australia ...etc, so the devaluation of its currency is not to its best interest.
If you go to the department stores, you will see that the products that China exported is quite different than most of S.E Asian countries, so to some extent, China is not competing with S.E Asian countries. Besides, thinking about the size of China's economy, China is not a country lived on export, it is a country with huge natural resources, and export is part of its business, but not everything. Quite on the countrary,
China is a big importers, it imported a lot of products from the S.E Asia, and US, Europe ,so devaluation of the currency is not to its best interest at all.
and I did not invent it, it is just the fact. |
