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But if China did not want "overheating" of its economy, it would not be maintaining its exchange rates at a steep discount.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Tue Mar 16th, 2010 at 10:29:44 PM EST
[ Parent ]
They may be in a "careful what you ask for" situation just about now. Their mercantilist  and chauvinist may inhibit them from so doing, but I suspect their economy and society would be much better off in five and ten years were they to build medical infrastructure by purchasing the equipment from the US than were they to develop the industry to produce it themselves.

In order to stabilize the world economy they need to find a way to stop accumulating dollars. They do not want to stop exporting to the US consumer market. Unless they have a world class medical technology sector themselves, this would seem to be one way to improve the quality of life in China while moving towards balance in their trade with the USA.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Mar 17th, 2010 at 08:40:53 PM EST
[ Parent ]
... years, which means finding ways to continue generating jobs for the still rapidly expanding labor force until they crest the demographic hill that they inherited from Chairman Mao.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Wed Mar 17th, 2010 at 11:18:18 PM EST
[ Parent ]
Stabilizing the world economy and preventing a domestic meltdown in China are both essential to the existing regime surviving for five or ten years more, but they might not see or agree with that.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Mar 18th, 2010 at 01:26:15 PM EST
[ Parent ]

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