flatman

Why China's Exporters Are Complaining Loudly

Look the Chinese have been very smart about this. Through a cheap currency and cheap labor they have used exports to develop a broad spectrum of industries that export to developed countries. Along the way it means they have built the latest factories, trained a workforce and started to build a middle class. As that middle class evolves they will have the industry to support it and not be at the mercy of the developed world. Ideally that could mean that they will be less reliant on exports. As that happens they will let the currency appreciate and since by that time they have killed off domestic manufacturing in the developed world - they will still be able to export.