Q&A: What yuan devaluation means for China, othercountries
BEIJING (AP) — China devalued its tightlycontrolled currency Tuesday following a slump in trade, allowing the yuan'sbiggest one-day decline in a decade. The central bank said it was trying tomake the state-controlled exchange rate more market-oriented. In recent months,the yuan has strengthened along with the dollar, making Chinese exports moreexpensive and raising the risk of politically dangerous job losses inindustries that employ tens of millions of workers
Kevin 6 hours ago
If China will not allow it's currencyto freely float why should the Yuan be considered a global currency?
Chung 1 hour ago
You write the rules for the games and youdominate, but when someone beats you using your rules, don't complain! It willget worst if someone is creating new rules for the same kind of games and dominate.Don't blame the other party for creating, anyone will do it likewise when theyhave a chance. The countries in this world have accepted your rules since UNwas established, you have defied the UN Charter because you are powerful andyou can make the world to follow yours especially when the cold war ended withyour only enemy disintegrated. But time's changed, no longer the world needs adictator (like using QE to manipulate the currency whilst at the same timeaccusing someone undervaluing its currency and move the world to condemn thissomeone), your influence in this world is waning and the eyes of the world istelling!
JOHNSON 1 hour ago
Devaluating its currency maybe good for China as far asexporting goods is concern but there are consequences related to it. First isthat some of the components and raw materials from abroad will also need somuch yuan to bring in. Also, Inflation could follow devaluation and thoseemployees will be asking for increase in pay since commodity prices internallywill start to rise especially those that have imported components. As far as China isconcern, they will control the people clamoring for pay rise most likely byforce. It is always a cycle that one follows the other. Energy cost is one thatmostly dictates the price of goods and with the present crashing of oil prices,Chinaneeds a huge currency devaluation for it to see competitive advantage workingin their favor. The fact remains that the world has experienced over supply of China made productsand this decrease of manufacturing and exportation of goods simply means feware going to buy like before even with the yuan devaluated. If would probablytake years before Chinawill see requirements of their goods will return to what they used to be.
reprak 4 hours ago
The problem is that the millionaires andbillionaires are happy about Chinese currency being manipulated this way. Thesepeople are getting their products produced in China, paying in Chinese workers inChinese currency and selling the same product later on for US dollars. First ofall, we should balance the sheets-whatever value we import from China, that value of USproduct we should export to China.That would be a FAIR FREE TRADE. If Chinese government does not accept thoseconditions (as they do not accept it now), then we should tax the Chineseimports to death, giving our people a chance to compete and make the sameproducts locally for decent wages. But this is not going to happen easily,because some very rich people would have to be less greedy and some politicianswould have to stop taking money from these very rich, greedy people and makesome decent decisions protecting our middle working class.
Sweet Deep-Fried Ice Cream 4 hours ago
Chinaneeds to be punished for breaking agreements.