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Thanks to all for their comments. I agree with the benefits of what many said about China moving away from being an exporter of cheap labor. But this can be done without sacrificing the GDP growth rate or the annual increase in China's foreign currency reserves, through a correct choice of the optimal Yuan exchange rate, which is what has been the crux of China's current economic problems. Set the Yuan/Dollar Exchange Rate correctly, at around 6.50, and China can still move away from exporting Cheap Labor, or sacrificing its environment, by using the surplus GDP and surplus foreign currency reserve accumulated each year toward improving the wages, education, and leisure of the working people, plus employing a larger work force toward cleaning up the environment. |
It would be a cardinal mistake of logic to assume that a higher standard of living, and a cleaner environment, can only be achieved by sacrificing China's GDP growth rate, and its earning of foreign exchange through exporting its goods. They are not diametrically opposed. In fact, they are synergistic, and the PBOC is benefiting only Japan by keeping the Yuan artificially overvalued, using China's hard earned dollar reserves to buy Yuans that it can create out of thin air for practically nothing.
The PBOC must stop its destruction of the goose that laid its golden eggs, China's manufacturing sector, and leaving hundreds of billions of dollars of forfeited export earnings on the table each year for Japan to pick up as Japan devalues the Yen while the PBOC overvalues the Yuan.