Appreciation of currency 'will not cut trade surplus'

"Simply resorting to currency appreciation cannot solve the problem," Zheng Jingping said. "This has been illustrated by Japan's case." Zheng agreed that currency revaluation could help reduce the trade surplus in the short term; but in the long term, it is production costs...

Full description

Saved in:
Bibliographic Details
Published inChina daily (North American ed.)
Main Author Su, Bei
Format Newspaper Article
LanguageEnglish
Published New York, N.Y China Daily 21.04.2006
EditionNorth American ed.
Subjects
American dollar
Currency revaluation
Exports
International trade
Jingping, Zheng
Online AccessGet full text

Cover

More Information
Summary:"Simply resorting to currency appreciation cannot solve the problem," Zheng Jingping said. "This has been illustrated by Japan's case." Zheng agreed that currency revaluation could help reduce the trade surplus in the short term; but in the long term, it is production costs that decide whether a country would enjoy a trade surplus. The reality is that China's current labour and production costs are low, which has attracted many multinational companies to the country, Zheng said.
ISSN:0748-6154