Interesting piece by Gregor MacDonald on why China will revalue its currency: in a nutshell, “instead of a weaker currency through which to export goods, it may be time to have a stronger currency through which to import resources.”
That makes some sense, in light of the recent news in iron ore pricing. And it supports the “China Continental” thesis James Kynge posited last year, that:
Just as the US during the 19th century underwent a transition from export-oriented growth to a greater reliance on inner dynamism, so China is looking inwards for the engine to drive its economy.
In China’s case it is still early days, but evidence suggests the conventional view of an export-dependent, river delta-driven economy no longer matches the reality. The argument here is not that trade has somehow become unimportant to China, but rather that the energy generating the world’s fastest economic growth rate this year is increasingly coming from within.
A series of indicators reveals the shift to “China Continental” – the transition of the world’s most populous country into an increasingly self-propelling economic force.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
