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| China-Japan-Koreas |
| US threatens to tariff China exports |
| 2005-05-17 |
| WASHINGTON - The Bush administration, in its hardest stance yet, warned China on Tuesday that it likely will be accused of manipulating its currency to gain an unfair trade advantage over the United States — unless Beijing acts swiftly to overhaul its currency system. SNIP American manufacturers say this system has undervalued the yuan by as much as 40 percent. The weaker yuan makes Chinese goods cheaper in the United States and American products pricier in China. I'm sick of seeing all my cheap crap being made in China "While China's 10-year-long pegged currency regime may have at times contributed to stability, it no longer does," Their government is no longer contributing to stability either the Treasury report said. The report called China's currency policies "highly distortionary" — posing a risk to, among other things, China's trading partners and global economic growth. SNIP For their part, the Chinese still insist they need more time to shore up their banking system so it can withstand the volatility that a flexible currency would introduce. This may be true. I have read in several locations that nearly 60% of the Chinese bank loans are bad. |
| Posted by:mmurray821 |
| #9 Trade tariffs on China will cause their economy, and oil usage to decline. Look for a drop in world oil demand, and price level, IF it happens. One other thing: On a currency basis (none of that PPP crap), the US economy is still at least 10 times China's GDP. What is 5% of our GDP is 50% of China's. Any trade unpleasantness will screw China over disproportionately 10 to 1. |
| Posted by: Dave 2005-05-17 22:52 |
| #8 Wot simple minded nincompoopery! |
| Posted by: Allen Greenspan 2005-05-17 22:38 |
| #7 |
| Posted by: Anonymous6256 2005-05-17 22:36 |
| #6 Don't hold your breath on that US threat. Should China counter the threat with a retaliatory move of halting ALL imports from the US, what do you think would happen in Washington as a repercussion? And thats not addressing the export option! Let's face it...they can go back to bicycles and candles faster than we can recover from a whopping wallstreet drop! |
| Posted by: smn 2005-05-17 21:47 |
| #5 This means more employment in Honduras, as the workers sew on new lables printed 'Made in Honduras' to the Chinese manufacture clothing. |
| Posted by: Angang Thrineter4502 2005-05-17 21:01 |
| #4 that's the drift - economic voodoo unlike anything before. The crash should be entertaining if too many aren't hurt.... |
| Posted by: Frank G 2005-05-17 20:28 |
| #3 A good friend of mine used to work for a big China bank. Amoungst other things she told me was that credit risk was never a factor in making loans. What mattered was your connections. Without specific actions to deal with them, bad or questionable loans accumulate and become an increasing percentage of a bank's loan portfolio. When the recession comes, and it will, every China bank will be found to be insolvent. |
| Posted by: phil_b 2005-05-17 18:49 |
| #2 Yeah... 60% are bad... but they're getting themselves in worse and worse trouble by buying up our relatively (to them) overvalued currency to keep the peg. Until they float it'll never get better. |
| Posted by: Damn_Proud_American 2005-05-17 17:43 |
| #1 I want my cheap crap made in Vietnam or perhaps India. |
| Posted by: Shipman 2005-05-17 16:45 |