Wednesday, January 19, 2011

China and its love for weaker YUAN..

China, as we all know which tops the growth chart in terms of economy has a very simple tactic to achieve its goal and that is - 'keep playing at a low cost'. Today, we all look at china and its manufacturing capacity for any business we plan to venture into. People are making millions just on the simple aspect of cost difference which china provides and its only possible if the value of YUAN is kept low. US has been pestering them since 6-8 months to assign the right exchange value which china should have post analyzing their GDP and other economical aspects. I doubt china will agree to the calculations as an increase in their currency value(stronger YUAN) will affect the purchasing power of other countries adversely.  Hope the world is able to convenience them for its own benefit or else we need to learn the game - 'play cheap'

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