States and China over the valuation of the Yuan. This which began in the early 21st century is being pursued by opinions among economists have been divided as to whether it will have a net negative effect on the global economy. By April 2011 journalists had begun to report that the currency war had subsided. Some economists however have continued to assert that the conflict is still on-going.
The United States and other countries hope that greater demand from China for their exports, resulting from a higher value of the yuan, will help them resume sizable economic growth as they recover from severe recession. Their governments especially want to reduce the high levels of unemployment.
1. The impact on China
Advantage 1 : Cheaper Imports
China imports technologies, petroleum, m
China
- The Chinese exchange rate system is the fixed exchange rate system which is fixed to the dollar. In 1994 January 1, China unified the official exchange rate and the market exchange rate and adopted a managed floating exchange rate system that restricted one day exchange rate fluctuation band with ±0.3% of the preceding day head families Until May of 1995, the yuan currency exchange rate
China to change the exchange rate.
At this time, our group wanted to find out why some countries are forcing them to change the rate and what kinds of effects would occur if China changes the exchange rate.
Entering into a main text, before, the exchange rate system and yuan currency (RMB)raise criticism of China rise simply should have been examined about the background.
In 2005
China
- Partner of both General Motors & Volkswagen
- Bought Nanjing Automobile Company
- Owns 51% stake of SsangYong Motor Company
and some share of Daewoo Motors
First Auto Works (FAW)
- Second largest car maker in China
- Strong government support of FAW cars
- 30 wholly-owned units and 17 holding companies
- Total assets of 117 billion yuan and 129,492 employees
- Pa