This is why I don't support the internationalization of rmb. This benefits gone.
Chinese Economics Thread
- Thread starter Norfolk
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China's auto export is not increasing because of yuan valuation. It's increasing because they got more shipping capacity and many other reasons.
China's export industry is long past the stage where it depends on cheap yuan for competitiveness.
All I can say is that the local Subaru/JLR dealer here started importing Changans about 4 years ago and now they're everywhere. Are they as good quality as Audi/BMW/Mercedes? No. Are they good VFM? Yes.
When you think about it, that's exactly how wall street would work.
Hype India and say China is collapsing. Then when they dump their overpriced indian bags to the trend followers, they low key buy up the Chinese stuff at a lower price.
Wall Street wins and the suckers who fell for media conditioning aka many lose. It falls in line with their actions so far.
It's not a main factors now, but it's still the factors for competitiveness that's good to be kept. Anyways, internationalization of yuan will make less control for PBOC to stabilize currency.
well, they are not losing control on it. They have large quantity of USD to defend its value and they can print more Yuan to weaken its value. But the point of low Yuan being good for China is a very ancient way of thinking things.
China's industries are often 3 or 4 times cheaper than the West. Having a stronger Yuan doesn't hurt its export and improves China's ability to attract investment from countries like Saudi Arabia and Russia that run a surplus vs China and also allows China to use money to wield influence around the world (like America does). Why do you think China's central bank still defend RMB? It wants currency stability, because that's good for business
China run's a huge trade. surplus with India. Why would you stop that?
Investment not trade. Keep everything transactional. No JV. If western business want the money, they go. Either it gets nationalized in a big diplomatic incidence, or better. Indian branch management go into main branch and take over.
The Indians are trying to trick Apple and tesla into their trap.
so unfortunately, it's not always their choice. Apple tells luxshare to offshore to India. Luxshare can keep its place in supply chain by offshoring to India or forgetting about that prized Apple contract.
As for other businesses, they have the choice of doing JVs and get market access or not being in the market. India is an exceptionally protectionist control where gov't is controlled by the 7 richest families. Modi gov't does what those big families tell them. So if you want to access Indian market, you have to work with those families. The other option of course is to just be the supply chain for those Indian companies. That has been happening increasingly also.