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

To: RealMuLan who wrote (900)	10/1/2003 2:38:51 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China's currency: Renminbi and ruin? By Hussain Khan ... If under US pressure China floats the yuan, it will have more dollars in its hands and US manufacturers will be unable to reverse the 20-year-old trend of losing to foreign competition. And, because the cost of manufacturing will rise on the upwardly floating currency, the 65 percent of exports produced by Western-owned factories in China will become more expensive and less competitive. Western and particularly US industry would inevitably suffer. "What an upward revaluation of the yuan could do, however, is firstly make goods more expensive for the heavily indebted American consumer and, more importantly, pull the rug from under China's economic development and integration into the international community," said William Belchere, chief economist at JPMorgan Asia Pacific. "It could do this at a time of global economic fragility and with serious weapons of mass destruction crisis on its own doorstep, in the form of North Korea's announced nuclear-weapons program." atimes.com