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Why the United States keeps urging China to appreciate RMB?

by on February 27, 2010

First of all, China is an export-oriented country that a big portion of its development accredits to the export.  Appreciation of RMB would cause dramatic negative influence to the country’s economy.  On the other hand, the United States cannot buy goods that are equally cheap, but of good quantity, from any U.S. companies.  Just imagine, in China workers are paid 1,500 Yuan ($220) per month for producing these goods, which is a job that no one in the U.S. would like to do for that amount of money.

The only purpose for the United States is to strategically suppress the development of China, nothing else.

This view came from a comment in Financial Times Chinese.


From → Good to Know

  1. But I have to say it’s a typical case of the developed countries “helps” a developing country. First of all, $220 per month for Americans could mean living in the hell, but in China, 1500 Yuan could mean you are not hungry anymore. Secondly, not all the Chinese get 1500 Yuan per month, People in Shanghai, graduating from college could at least make you find a 3k RMB position. And for those don’t have well-educated people in China, working at an international company, producing goods for them, and earning 1.5K per month mean something to them. Because too many people in China competing positions.

  2. Not only suppressing the development of China but also protecting its own companies. My father runs a valve company. He told me a lot about the negative impact of the appreciation of RMB. The synergy of low exchange rate and comparatively high productivity created the “made in China” phenomenon.
    Human resource in China is much cheaper than that in U.S. I will say that this is the underpinning of outsourcing. I don’t think Chinese government will agree to appreciate RMB in near future. Self-protection. U.S government has other strategies to suppress the emerging giant.

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