Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (857)	9/26/2003 9:54:58 PM
From: BubbaFred	Read Replies (2) \| Respond to of 6370

M. Stanley's Roach: Dangerous, Wrong To Scapegoat China Thu Sep 25, 4:31 PM ET news.yahoo.com WASHINGTON (Dow Jones)--Morgan Stanley economist Stephen Roach said Thursday that "it is dangerous and wrong for the U.S. to point the finger at China as a major cause of its massive and still-widening trade deficit." Roach said in a new report that if the U.S. wants to reduce its trade gap, it must come to grips with more fundamental problems of its own, namely the rapidly vanishing saving rate. "Until it does, U.S. trade deficits are likely to be the rule, not the exception, and the low-cost, high-quality option of Chinese trade is in America's best interest," he said. Roach said China does not compete on the basis of an undervalued currency. "It competes mainly in terms of labor costs, technology, quality control, infrastructure, and an unwavering commitment to reform," he said. Roach said China's exports would suffer minimal loss of market share even if it were to revalue its currency upward by 10% or even 20% - a change he said he neither expects nor advises. The Morgan Stanley economist said American politicians, frustrated over persistent job losses, have become convinced that China is the culprit. At present, he put the odds of any China-bashing legislation passing Congress at being no higher than five to one. "Yet those odds will likely rise as the U.S. political cycle heats up - especially if America remains stuck in a jobless recovery," Roach said. -By John Connor, Dow Jones Newswires; 202-862-9273; John.Connor@dowjones.com