Views: 22421|Replies: 42

USD:RMB exchange rate [Copy link] 中文

Rank: 8Rank: 8

Post time 2008-7-1 23:25:20 |Display all floors
And therein is a lot of pain. By the way, that's what Obama will be inheriting: a lot of troubles.

I don't think Chinese manufacturers have the know-how to deal with it. I did talk about buying forwards and futures, but I think that's a bridge too far for most of them.
USDRMB.jpg
Let the dice fly high

Use magic tools Report

Rank: 8Rank: 8

Post time 2008-7-2 09:20:59 |Display all floors
I don't think the exchange rate changes are actually that significant. The graph looks dramatic but it's not actually a far drop, only 2.3%. That might be enough to kill the margins of a number of manufacturers, but that just reduces the amount of competition on the Chinese side. I doubt China is taking advantage of too many labor-reducing practices, so overall employment shouldn't be severely affected.
"Justice prevails... evil justice."

Use magic tools Report

Rank: 8Rank: 8

Post time 2008-7-2 09:50:49 |Display all floors

Efficient use of labour, use of Efficient Energy....

....two drivers of economic growth in China.

an opinion.


Green Dragon

Use magic tools Report

Rank: 4

Post time 2008-7-2 09:56:37 |Display all floors
i think most of the small factories are affected by the changes of the RMBexchange rate.Many of them are going to  be bankrupt..

Use magic tools Report

Rank: 8Rank: 8

Post time 2008-7-2 09:58:28 |Display all floors

Efficient use of labour, use of Efficient Energy....

....two drivers of economic growth in China.

However the Europeans must be quite serious in HIGH COST renewable energy, and using legislation to secure it.
They have minting rights and are willing to challenge the US$.

The Amerikans are still in protecting crude oil stranglehold, super sized consumption to maintain their lead.


just an opinion of the "3 horse" race!



Green Dragon

Use magic tools Report

Rank: 8Rank: 8

Post time 2008-7-2 10:01:32 |Display all floors

Reply #4 annaliu531's post

well, many would be open "smallish to medium" services companies.

it's quite unlikely a chinese entrepreuners will use his "bottom Rmb" to salvage a non cost effective business.
eg. he could decide to build a row of shophouses in a medium size city to collect rent.
or he could set up a small chain of retail groceries shops....

The small manufacturer must have made a "significant profit" to remain in the "export" business.
Services in the city is so important in China's ongoing upgrades.


Green Dragon

Use magic tools Report

Rank: 4

Post time 2008-7-2 10:01:34 |Display all floors
greedragon nice to meet you here your english is definitely great.hehe admire you too much.
down with Greedragon!
hehe

Use magic tools Report

You can't reply post until you log in Log in | register

BACK TO THE TOP
Contact us:Tel: (86)010-84883548, Email: blog@chinadaily.com.cn
Blog announcement:| We reserve the right, and you authorize us, to use content, including words, photos and videos, which you provide to our blog
platform, for non-profit purposes on China Daily media, comprising newspaper, website, iPad and other social media accounts.