Posts Tagged ‘yuan’

Sometimes China Bugs Me

Let me start this off by saying that I really heart chinese people.

Chinese food rocks. The Great Wall is amazing (I can’t wait to go see it myself!). And the culture has withstood the test of time. Honestly, I really can’t wait to finally visit China.

But the chinese government annoys the crap out of me sometimes.

China’s government goes around and talks about how the buck shouldn’t be the reserve currency. Yet China completely ignored the fact that it helped fuel US spending by lending the US money in the first place!

That’s not even the part that ticks me off the most.

The thing that really annoys me is the fact that China has kept the value of its currency down, on purpose, for years. I mean, is it any wonder why global manufacturing is centered around China? It keeps its currency cheap… which keeps labor cheap… and gives China a HUGE competitive advantage.

Sure, China graciously allowed its currency to rise a little bit – something like 22% against the dollar over the past few years. But, the huge trade surplus China carries should give evidence that the yuan is STILL undervalued.

China should grow up and let the yuan float in the open market. Then, it can dictate rules and not seem full of the brown stuff.