Devaluation of'Yuan'by China
This is another Chines move to devalue its currency Yuan in spite of that other developed countries including USA are repeatedly requesting it to revalue Yuan on upper side. Besides that China is the second Economical and Industrial power in the world. However China is very clever in extending its two important Agendas i.e. The expansion of its Territory and Trade. China also knows how to built up wall before the problems start.
China has already claim the several segments of Indian territories. Besides that China claims Taiwan, Some of the Islands from Japan. Its also claims sovereignty over South China Sea. It implies that there are territorial deputes with Thailand, Vietnam and Several other countries.It is to be noted that China claims territorial rights over the lands wherein its strategic economic intrest are involved. China puts to much weight in the power struggle because of its powerful military power with the largest military forces in the world.
Besides that China has invested its vast financial resources on the all continents of world for political and financial advantages. China is the biggest manufacturing Hub of the world. Hence it goes on doing hungry search for selling its products at very low rate in the world.
Hence we must analyse the present economic condition of the China. China is at present passing through very sluggish Economy. Its GDP has come down to 7% with Lebour is becoming Costly. Therefore China has searched country like Vietnam wherein Lebour is cheap for manufacturing Goods. Besides that Unemployment and Social Unrest is increasing on account of bad economical conditions.
All these conditions have compel China to devalue it currency so that its export are made cheaper for maintaining the export level. In the process the export from European Union and USA etc are going to become costly.
In view of what stated above the Chines move of devaluing its currency appears to be very smart move. China is implementing its Agendas of expansions of Territories and Trades very Smartly and Cunning manner.
***********************
No comments:
Post a Comment