China
China’s pledge of a more flexible Yuan will reduce the China’s exports in 2010-2011, adding to difficulties that include the European debt crisis and rising costs, a Ministry of Commerce official said.
“I’m not optimistic about the exports this year,” said Yu Jianhua, a Ministry of Commerce director general, after a press conference during the Group of 20 meetings in Toronto. “It’s essential for exporters to cut cost and keep their share in the world trade market.”
“I’m not optimistic about the exports this year,” said Yu Jianhua, a Ministry of Commerce director general, after a press conference during the Group of 20 meetings in Toronto. “It’s essential for exporters to cut cost and keep their share in the world trade market.”
China’s exports surged in December 2009 and imports rose to a record in a stronger-than-forecast trade rebound that may lessen the case for governments to sustain stimulus programs this year.
Exports climbed 17.7% from a year earlier, the first increase in 14 months, and imports jumped 55.9%,. Year-on-year comparisons are affected by declines from late 2008 as the global credit crisis deepened.
Exports climbed 17.7% from a year earlier, the first increase in 14 months, and imports jumped 55.9%,. Year-on-year comparisons are affected by declines from late 2008 as the global credit crisis deepened.
The Chinese Premier Wen was out with rather bellicose rhetoric that again underlined the Chinese intention to keep the Yuan pegged to the USD for now and not yield to outside pressures for a revaluation. This is actually somewhat USD negative as it supports the idea of further reserve diversification pressures, which tend to boost the Euro. In an article, Wen was quoted saying "We will not yield to any pressure of any form forcing us to appreciate. As I have told my foreign friends, on one hand, you are asking for the renminbi to appreciate, and on the other hand, you are taking all kinds of protectionist measures". The debate on whether China is the world's great hope for economic growth or a giant bubble waiting for a spectacular implosion continues to rage.
Chinese Premier Wen Jiabao said the government will cool property prices, resist pressure for the yuan to appreciate and keep inflation at “reasonable” levels.
China’s property prices climbed last month at the quickest pace since July 2008, adding to concern that record lending and inflows of money will inflate asset bubbles in the world’s fastest-growing major economy. Central bank adviser said Nov. 18 that the nation needs to be on alert for stock, real-estate and commodity bubbles as global capital flows into emerging economies.
Read more: Chinese Premier Wen Pledges to Cool China Property Prices, Resist Yuan Pressure ...
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