Europe's finance chiefs arrived in Beijing today with the warning that China must let its currency strengthen against the euro or risk sparking a trade war. European Central Bank President Jean-Claude Trichet, Luxembourg Prime Minister Jean-Claude Juncker and European Union Monetary Affairs Commissioner Joaquin Almunia will argue that an undervalued yuan is ``triggering protectionist tendencies,'' according to a briefing document obtained by Bloomberg News. The yuan rose to its strongest since a peg to the dollar was scrapped in July 2005 as Juncker told reporters at Beijing's Peninsula Hotel that the currency will be the main topic of the two-day talks. European policy makers are pressing for the yuan to gain more against the euro to curb a trade deficit with the world's fastest-growing major economy that's swelling by $20 million an hour. ``The message from the Europeans is that it's growing increasingly difficult for them to counter protectionist sentiment at home and that the Chinese must help them,'' said Gilles Moec, a senior economist at Bank of America Corp. in London. Europe's complaint is that while the yuan has risen almost 3 percent against the dollar since mid-August, it has weakened 7 percent against the euro. The yuan gained 0.1 percent to 7.3867 against the dollar as of 12:33 p.m. in Shanghai. It rose 0.1 percent to 10.9882 against the euro. http://www.bloomberg.com/apps/news?pid=20601087&sid=atF_99UXVr40&refer=home Trade war ? They don´t even know how to spell the expression "trade war" !!
Now watch the Chinese finesse those sobs First they can't sell their aircraft ... now they're whinging about the ever fair competition from China.
Euro goes up and up. During these three months in France, I used Dollar Credit card, which changes the Euro into Dollars firstly, then changes Dollars into RMB...It costs me a lot and a lot. Personally, I hope RMB could go up a little. But what about others? our export to euro countries? China could not change a lot at one time. The economics should go on a healthy way. I am intererested in Development economics and I want to pursue a further degree on it, I think you all know more about economics than I, could you tell me something about this?
god this reminds me of real world business i do with the chinese. they give you concessions all day to your face, some of which you truly need and want; you leave the negotiation feeling like you got a good deal. you get back home and take a look at what they sent you, it looks like a duck, it talks like a duck, but then one week later it turns into a rubber chicken! they never really give you a fair deal unless they have no choice. china has miles and miles of tricks up their sleeves. there will be no trade war. china is already planning their next means of granting concessions to the europeans. but in the end neither the us nor the europeans will ever get their way. unless they really do want rubber chickens but said they wanted ducks
If so , why you trade with Chinese? There must be some problems, but we , Chinese , could distinguish Ducks and Chickens. God knows which sentence I wrote down reminded you such awful experience.
Why trade with the Chinese? No alternative. My frustration stems from dealing with a great deal of small wholesalers. I am very happy with my suppliers now but figuring out which chickens would turn into ducks was a costly education. One which gave me a lifetime of skills; mandarin, bribery, a golden smile etc. I was just hinting that China will grant the EU concessions to their face but lull them into a false sense of complacency. Just my personal experience.
I really hate what you said, mandarin... I want to make changes, but maybe just I, a student , has no much power. I want to study Development economics in America, and then in China, REFORM.... We need more regulations... If you really have to trade with Chinese, so the best way is to help China be a better one. This is Game theory, right? Firstly, maybe help me with my applicaiton to Phd of Economics OK?
Hehe, actually I am just spouting off. The truth is I have learned alot about patience and humility after wanting to kill some devious Chinese. But most Chinese I meet are just like you, curious and well intentioned. One thing can be said for you and your country, your drive is inspiring. If we could just get you all to focus on quality of life rather than the sheer volume of it =) My advice, learn to trade with money, goods, whatever you are taken by and then go back to school and learn about theories. All the theory in the world will never prepare you for surviving. (Ask John Nash how well his application of game theory went in his investmens in the real world!) If you had a good family, you are prepared, go out there and slay the dragon!