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Should the Chinese be allowed to continue to fix the Yuan - Essay Example
Author : gritchie
Pages 3 (753 words)
With the growing capacity to compete with International standards, China is emerging as one of the biggest competitors in the world. It is in the league of beating any country in the world in the quality of products and exports. China is throwing big challenges to all the super powers for the last couple of years…
The exhibitions held at Guangzhou, Beijing every now and then, attract a lot of participants from the world to buy and sell their products. This has become a platform for Industries to show-case their products. This has taken away the hosting rights from Germany and France, where Industrial Expo used to be held in the past. (ChinaDaily 2009)
According to the leading businessmen in China, it is reported that the appreciation of their currency has surpassed the growth of their business beyond their dreams. Due to the higher valuation of Yuan, the exporters who have been making money on Dollar denomination found to be declining in their profits. At the same time the exhibitors are afraid that the process may slow down their export due to the valuation. However the associations and the chamber of commerce in China say that this is only a passing phase and in due course of time it will become normal, as the economy worldwide is improving. (ChinaDaily 2009)
The Chinese government, in order to reduce the gap with the major buyer like United States of America, revalued its currency against U.S dollar, to avoid the fixation of the rate of Yuan against U.S dollar. The stronger Yuan will result in the Chinese products being priced higher. ...