Finance Chiefs show optimism, prod China:
"Notably, the finance ministers suggested that China should move toward a more flexible exchange rate, effectively acknowledging views by the US and other Western nations that the Chinese have been keeping their currentcy artifically weak to boost exports."
However, US Treasury Secretary refused to call China as a currency manipulator. Such judgment was released by media several days ago. It is the fact that global consumers including consumers in USA prefer to purchase Chinese products thereby causing trade deficits in the past years. However,according to news release from Hong Kong Phoenix TV dated April 25th,China will spend several US billions Dollars to purchase American products to lower the trade deficits in favor of USA.
Trade is a two-way street and the Law of Comparative Advantage should be understood for all concerned as a matter of mutual benefit.
Francis Shieh aka Xie Shihao on Saturday, April 25, 2009 at 10.32 a.m.
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