Contributor Article:
Ever since China announced to the world that there will be some major change in their exchange rate policy in July 2005, it became a topic for debate. Though this, China has attracted the attention of the major economic players in the world, and has been put under scrutiny ever since.
People tend to forget that the China exchange rate policy is the one responsible in making China an economic power in the future. There are many economists that believe that the China Import / Export has yet to face difficulties from its policy and that the Yuan, the Chinese currency will also depreciate and this speculation has been enforced by the decrease of China Imports before. But when China showed improvement in their imports by December 2009, economists change their statements and speculated that China may look ahead for good times, again due to their rate policy. And with the Chinese governments promise to keep the Yuan stable to help the struggling exports of the country, that speculation was enforced.
Despite all that, China has been and is still criticized by other world economies and has been facing challenges with regards to their policy. The Chinese Government today is facing the pressure to appreciate the value of Yuan. When that happens, it will not only affect China – that is in a good way – it will also affect the economy of other countries and the whole world! China realizes that it is importance in flexibility and the appreciation of the Exchange Rate in China but if their government will continue to ignore the pressure the world is imposing upon its shoulders, and then it may result to the rejection of its exports by the developed countries. The worlds demand on China to change their policy will have great benefits and will impact not only China but also the world.
About the Author
Brendan Elias and Alex Ryan have been teaching individuals how to import from China in their free 30 day video training series. Visit our website to sign up to this free training. You will discover how to source products from China, contact factories, negotiate to get the best price and much much more. http://chinaimportformula.com.au/
