MercoPress. South Atlantic News Agency
Yuan is 'significantly undervalued' US Treasury tells China
United States has told China its currency must be allowed to rise if it and the global economy are to see stable growth. The US Treasury's twice-yearly report to policymakers says the Yuan is “significantly undervalued”. Read full article
Comments
Disclaimer & comment rulesThe then US administrations in the mid-1980s used to go on at Japan about an overvalued Yen, 25 years on, the same old story.
Apr 17th, 2014 - 06:27 pm - Link - Report abuse 0And look what happened to Japan AFTER the 80s.
Apr 17th, 2014 - 09:15 pm - Link - Report abuse 0Welcome to China's future.
Buy Yuan now.
Apr 18th, 2014 - 10:06 am - Link - Report abuse 0lf you can get 6 to the US Dollar, then its revalued to 3 to the dollar., when you sell the Yuan, you've doubled your money.
3,8 Trillions!!!!
Apr 18th, 2014 - 12:26 pm - Link - Report abuse 0The Global Superpower!
https://www.youtube.com/watch?v=zVhzu7iIgtY
3.8 Trillion do not make a superpower if the country´s forced to maintain its currency undervalue in order to compete in foreign markets with cheaper products. Many investors are now moving operations to Indonesia, Philippines, Central America, México, Brazil and other countries because cheap labor isn´t enough anymore when transportation costs are over the roof.
Apr 18th, 2014 - 09:14 pm - Link - Report abuse 0Brazil´s currency is overvalued, good for consumers and inflation control, good of low-cost commodity exporters, but bad for manufacturing industries. An undervalued Yuan hurts american manufacturers, but also mexicans, brazilians and europeans.
China will be a GLOBAL power but not a SUPER power.
Apr 18th, 2014 - 10:21 pm - Link - Report abuse 0Its workforce started shrinking 2 years ago and its population will start perhaps as early as 2020. It has some of the world's worst environmental problems and income inequality.
It will be too busy looking inwards to look outwards.
Anglotino 6)
Apr 18th, 2014 - 10:53 pm - Link - Report abuse 0There´s indeed a demographic bomb in China, and hundreds of millions of people who work today for a few dollars a day won´t have social security when they start retiring in less than a decade. China has huge environmental problems, endemic corruption and centralised and expensive bureaucracy more interested in maintaing their status quo at all costs.
Also, China has to spend billions in internal security apparatus to maintain control on separatist provinces.
The advantages that gave China double-digit economic growth for more than two decades are no longer there: transportation costs have skyrocketed and will remain high, cheap pool labor from rural areas has begun to shrink dramatically rising wages in industrial centres, new supply-chain developments in North America among Canada, US and México mean less factoring opening in the Middle Kingdom, other regions like Eastern Europe are also developing interconnected supply-chain to retain factories that otherwise would have gone to China.
Some decade ago Americans feared China would begin exporting massive amounts of cars to the US, today they cannot maintain market share in electronic consumer products. The textile industries have moved to Indonesia, Malasya, Central America and other regions. China no longer competes the way it used to be, now it costs almost the same to produce many things in the US as in China, when transportation costs and idle time in transportation is taken into account.
But China seems to think all they have to do is devalue the Yuan again and again.
Wow Jose. Someone who finally sees China as I do.
Apr 19th, 2014 - 12:27 am - Link - Report abuse 0Making the yuan more competitive won't bring back the labour arbitrage that they have now lost.
I wanna write heaps more but am on my iPhone. Post again and let me reply more later when I can type on a laptop.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!