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Asia Pacific Forum Headlines Members: FREE Non-Members: Available to qualified registered users. Format: E-newsletter

Summary

Read by CFOs, treasurers, FX traders, lawyers, accountants and others, Asia Headlines provides links to original articles, commentary and white papers, economic indicators, as well as a snapshot of Asia business news from the world's financial press.

Content includes articles from both AFP and gtnews, contributions from experts, and links to news items and postings and other networking items by users of the Asia Forum site. The newsletter covers banking, cash management, FX and repatriation, trade finance, risk management, strategy and other topics useful to midmarket companies doing business in China.

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Excerpt

"Economist David Hale, in an essay in the journal Foreign Affairs and in an interview with us, argues that the emphasis on the weakness of the yuan against the U.S. dollar or the euro misses some fundamental points about China’s economy.

"The first is that Made In China does not mean made entirely in China but rather assembled in China from imported components, part of a larger economic expansion of the Asia Pacific region. In the increasingly fragmented world of manufacturing, this is the case everywhere. Hale points out that a stronger currency would lower the price of the products the China buys from other countries and assembles into imports for other markets.

"Another point of his is that with so much of the goods that consumers buy being imported from China, bringing up the value of the yuan would inflate the prices of those goods in markets where they are sold, which is a gloomy prospect at a time when the U.S. economy is teetering toward a recession. This is especially true in the case of lower-priced goods such as toys or textiles whose production has largely moved to low-wage economies."

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