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This post was edited by abramicus at 2014-8-12 10:55|
If you talk to tourists and visitors of China in the past 1-2 years, you will elicit a very surprising perspective of how UNCOMPETITIVE THE CHINA PRICE HAS BECOME in the retail marketplace. Chinese manufactured products have become more expensive than equivalent foreign manufactured products across the board, in practically all the major cities of China. Wholesale prices may still be lower than foreign products, but that is because the Chinese factories are willing to make extremely thin profits, compared to the foreign manufacturers. Even so, on the retail side, China's products have become as expensive, and sometimes, even more expensive than foreign products of equal quality. This is the turning point that was narrowly averted by the recent devaluation of the Yuan beginning in mid-January 2014, from 6.09 Yuan/Dollar to 6.20 Yuan/Dollar by mid-April 2014, whereupon the GDP growth rate, PMI, trade balance, and foreign exchange earnings, all shifted back from their negative trends to positive ones, all across the board. It is pathetic when a pair of sandals produced in China sells for $100 US dollars equivalent in China, that sells for $75 US dollars in America. Pathetic!
Pathetic because the only way that same pair of sandals can sell cheaper abroad than in China is because the manufacturer of that pair of sandals had to sell at or below cost to recover part of his fixed expenses, and hope that the domestic buyers can supply him with enough profits through higher pricing, to pay his employees, the interest on his borrowings or loans, and the raw materials for his products. What economic cruelty this represents to the manufacturing arm of China! And why do they deserve this treatment, when the Japanese manufacturers are being treated in the very opposite manner, where their products can sell cheaper than their Chinese competitors inside China, because the PBOC has given them extra milleage through unilaterally up-valuing the Yuan, while the BOJ unilaterally de-values the Yen?
This twin phenomenon of so-called "UNILATERAL REVALUATION OF THE YUAN BY THE PBOC" and the 'UNILATERAL DEVALUATION OF THE YEN BY THE BOJ" when viewed side by side, occurring in the same time, and affecting the same markets, constitute PRIMA FACIE PROOF that they were COORDINATED MOVES, but ALL TO THE DETRIMENT OF CHINA, AND FOR THE BENEFIT OF JAPAN, and therefore CANNOT BE MOTIVATED BY PATRIOTISM AND DUTY TO CHINA, but rather, its OPPOSITE.