Getting the most for your money in China

[Dan R]

Anyone contemplating if the dollar soon gets devalued to the Yuan by the Chinese government?

Would you rather hold dollars or Yuan?

 

Phil & Yun

It is the dollar that would be devalued with the RMB rising. So far the Chinese government is holding fast so don't expect ony quick changes. Also China would do it slowly unlike Japan over 30 years ago. That time in two days trading you could have made 25%. I had heard of it in advance and didn't have any cash at the time. Kicking myself ever since. I hope I haven't guessed wrong this time. But you are better off putting it in profitable Chinese goods if you have a way to market them here. If the RMB appreciates the goods would also rise in value based on replacement cost.

 

Economic growth in China has been disjointed by locales and a quick rise in currency could pose a dramatic set back to China's plans to be an alternative to the U.S. in the future.

[MarkD]

Economic growth in China has been disjointed by locales and a quick rise in currency could pose a dramatic set back to China's plans to be an alternative to the U.S. in the future.

My opinion:

 

China needs us to buy what they produce. If the Yuan rises against the dollar the goods they produce will be more expensive here. When the Yuan rises, we will buy less, causing some more unemployment there. Maybe not a lot more, but enough to worry the Chinese government.

 

There is a lot of political aspects to this on our side and the China side. Who knows what we or they will do and how it will be done. The talk is that they will let the Yuan rise, but only slowly.

[david_dawei]

Economic growth in China has been disjointed by locales and a quick rise in currency could pose a dramatic set back to China's plans to be an alternative to the U.S. in the future.

My opinion:

 

China needs us to buy what they produce. If the Yuan rises against the dollar the goods they produce will be more expensive here. When the Yuan rises, we will buy less, causing some more unemployment there. Maybe not a lot more, but enough to worry the Chinese government.

 

There is a lot of political aspects to this on our side and the China side. Who knows what we or they will do and how it will be done. The talk is that they will let the Yuan rise, but only slowly.

I guess put another way, The US has an insatiable appetite for Chinese [low cost] products... I was just reading about incredibly unbalanced trade deficit in the US.. and the hugh trade surplus that China enjoys.

 

I know the world, particularly the US, is screaming for China to stop undervaluing the Yuan and let it rise... but this seems to be blaming China for our own indulgences on a certain level. IF we want to embrace a free market system, then we have to accept that there are times when 'too much of a good thing turns bad'.

 

I agree there are implications to a rising Yuan. The unemployment issue is a bit scary considering the current discussion thread about how unsafe the GZ area is, because of the difficulty of the locals to get jobs.

[nygatl15]

May be true, but has anyone seen "somebody" unbundle the various bunches of vegetables only to re-bundle them with the choicest pieces?  

This one is good. I couldn't stop laughing.

I have no idea what is in store for me, But I can't wait to find out. Wenjie was very good in shangha. She told me in China, what ever they quote you, start at half of that!!