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Renminbi and dollar
Yapchongyee Updated: 2005-05-18 10:43 China need not revalue her
yuan/renminbi. The US$/renminbi peg is not any bilateral agreement, and the USA
can if they want to sell to China cheaper devalue the US$. No one is forcing the
USA to hold their exchange rate as they have today. They can do what is asked of
China and devalue; this is common sense and the USA has no strings to pull.
The USA cannot dictate to China. What will the USA do if China asks the USA
to devalue ? Why must China suffer ? Why not the USA suffer ? The problem with
the USA is that she can only see what others can do for the USA and not what the
USA can do for others. There is no commonsense that China has to sell
"expensive" when it is to the advantage for China to sell "cheap." The USA can
also sell "cheap" if they can but they cannot because the Americans want to live
at a level that is 100 times better than the people of China; Therefore why
should the Chinese make life better for the Americans by 100 times better than
their own ? Why is it not the responsibility for the USA to live 50 times lesser
than the Chinese instead of 100 times better than the Chinese ?
Competitiveness is about achieving effenciency; if the USA is what they say
they are (the most competitive society)then they should be able to beat the
Chinese at what the Chinese are ding so well. The USA must be able to sell much
cheaper than the Chinese. Having said that the USA must compete better and
become better than the Chinese. What is the worth of the WTO if it is not aimed
at producing at the most efficient and therefore at the cheapest ?
CHEAP LABOUR IS CHINA'S COMPETITIVE ADVANTAGE AND IF CHINA SURRENDERS THIS
ADVANATGE THEN CHINA WILL BECOME ANOTHER THIRD WORLD PRODUCER AND AT THE MERCY
OF THE USA> I say to our leaders in Beijin not to revalue at the demand of
the USA. The Americans will have to find their own solutions and not depend on
China to take the fool's "ROAD"
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