China has rejected U.S. requests that it accelerate the revaluing of its currency, the yuan, which American manufacturers contend is undervalued by as much as 40 percent. That makes Chinese products cheaper for Americans and U.S. goods more expensive in China.
Re: Bush Urges China to Strengthen Currency...
If China can revalue the U.S can devalue its own currency as well.
Re: Bush Urges China to Strengthen Currency...
If China can revalue the U.S can devalue its own currency as well.
no yaar dollar is already going down, i don't want it to go down further
Re: Bush Urges China to Strengthen Currency...
If China can revalue the U.S can devalue its own currency as well.
This won't worked beacause China has pegged their currency with USD. So if USD increases, Renminbi increase in the same ratio.
This is hurting exports from all countries including Pakistan and India whoexport to US. Some say prices Chinese products would go up by 40% if China plays it fair. Then Pakistan and India would be more attractive import locations for US.
Re: Bush Urges China to Strengthen Currency...
I see. The U.S wants to make its exports to China more attractive and Imports from China less attractive. The Chinese want to remain competitive particularly in the U.S market. The U.S wants the Chinese to become uncompetitive in the U.S and instead wants greater access to the Chinese market. Seems like a player losing a game and then asking for the rules of the game to be changed.
Re: Bush Urges China to Strengthen Currency...
I see. The U.S wants to make its exports to China more attractive and Imports from China less attractive. The Chinese want to remain competitive particularly in the U.S market. The U.S wants the Chinese to become uncompetitive in the U.S and instead wants greater access to the Chinese market. Seems like a player losing a game and then asking for the rules of the game to be changed.
Exactly! Yanks think they can dictate their terms to anyone. I think times have changed and Americans have to realize that they can't have everything on their wish list.
Re: Bush Urges China to Strengthen Currency...
I see. The U.S wants to make its exports to China more attractive and Imports from China less attractive. The Chinese want to remain competitive particularly in the U.S market. The U.S wants the Chinese to become uncompetitive in the U.S and instead wants greater access to the Chinese market. Seems like a player losing a game and then asking for the rules of the game to be changed.
US does not want China to be uncompetitive, but wants it to be fair. When the currency is manipulated it does not show the true picture of a country's economy.
I believe China should slowly start making the currency traded freely and let it attain the true market value. But China should do it slowly, else its economy will crash very badly, and that would crash the world economy as well - though to a lesser extent.
All developing nations are loosing billions of $ worth of exports because of this unfair chinese currency manipulation.
Re: Bush Urges China to Strengthen Currency…
Maybe not totally related, but puts a perspective of what could happen if the China Financial policies are changed suddenly
http://www.businessweek.com/globalbiz/content/may2007/gb20070530_657360.htm?chan=top+news_top+news+index_top+story
Re: Bush Urges China to Strengthen Currency…
achaaaa…kaamal hogayea bhi…i didnt know US make something 
(btw dont worry china is upto something really really special as usual :D)
Re: Bush Urges China to Strengthen Currency...
US wants it to be fair? hypocrisy at work. If you remove all the unfair trade barriers USA and EU have wouldn't have poverty in Africa. Drop them the loose change and all is good.