The Chinese

December 9th, 2010
by Richard

On the contrary, China thought of itself and has sparked debate. Is it right that economies such as China, do not assume its international role? The Chinese government under the impact of the crisis on its economy, focused on the domestic market through a policy of encouraging intense, allocating billions of dollars. At the same time, its trade balance benefited from a sharp drop in imports, largely explained by the collapse of commodity prices, while the drop in exports was of lesser magnitude. Conclusion: Despite the strong global crisis, China’s economy maintains a strong trade surplus, according to estimates the ING Group, could reach $ 325. 000 million this year. While the United States will continue to call on China to let its currency appreciate, the yuan has remained almost invariant so far this year, and its value in relation to May 2008 was seen in less than 2%.

Exchange rate policy is now more than ever, part of the Chinese government’s anti-crisis plan. China has reasonable grounds to prevent appreciation of the yuan and that should make its economy to maintain a floor of 8% growth, a goal for which, you need to take care of domestic demand and maintain strong external. A level of growth below 8% would jeopardize China’s economic model and its sustainability difficult because of the effect may have on the unemployment rate. Can not forget that in the eastern economy there is a process of urbanization of the rural population that needs to generate a large volume of jobs.

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