Summary
Today the world’s economy is struggling to recover from the recession , but in China there are evidences that they are using international trade rules to get their own economy better at the cost of others , by this they try maintain their export dominance.
They do that by using two major international bodies. First the World Trade Organization , by this organization they can complain about other countries trade practices. Filling a case at the World Trade Organization is one of the best weapons a country can have when you’re in a trade dispute with another country. By this they are trying to protect their own economy against others.
The second international body is the International Monetary Fund and is a sort of a watchdog for the global economic policy. Now the I.M.F. reports that China is constantly undervaluing its currency ‘the renminbi’. They keep ‘the renminbi’ artificially low all the time and that’s why China’s export is inexpensive and China’s import expensive.
Those two acts are against trade laws and that’s why other countries are starting to take measurements against China.
Personal Opinion
For us, China can be our hope but at the other hand it can also by our worst fear. They can supply us the cheapest clothes , electronic parts , ... but with their low remunerations they’ll claim most of our jobs. They attracts many enterprises because they have very cheap labour men and housing prices.
Also those measures that they take against competing countries and making their currency artificially low is cowardly and need to be restricted. Why does only China do such kind of actions and almost every other country respects the laws and make sure that a free trade is the new tomorrow.
By Nicholas De Potter
http://www.nytimes.com/2010/03/15/business/global/15yuan.html?scp=8&sq=trade&st=Search
Nicholas,
ReplyDeleteI totally agree with your opinion and particularly with the sentence you wrote: "China can be our hope but at the other hand it can also be our worst fear".
It's true that China is nowadays a very huge supplier of the European countries and also of the United States. We wouldn't stand as far as we are now without China.
But China knows that it has a very strong and leadingful position in the economic world...
In this period, with the crisis, we have to think at our future and we have to solve this as effective as possible. But to do this I think all the countries have to be solidaristic to each other. I know China has a leadingful position, and that we, Belgium, are having also a good trade between other countries. But I certainly know that there are a lot more countries who haven't such a good position! It's for those countries we've got to think with another spirit!
We've got to help each other, not destroy each other!
Nico Cossyns