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I can’t figure out why China hasn’t priced themselves out of exports yet. Normally countries move up the value chain as their domestic standard of living improv

I can’t figure out why China hasn’t priced themselves out of exports yet. Normally countries move up the value chain as their domestic standard of living improves and their currency strengthens. Then other countries find their exports unaffordable. I know China has pegged their currency to the USD and only rarely begrudgingly let it float slightly. It seems to me that “the ledger” isn’t balanced and that something is being kept off the books.

prewett 4y ago
There are lots of people from the countryside, where, as far as I can tell, one's options are basically subsistence farming. Until the supply of people from the countryside dries up (and it has, to some extant), there won't be a lot of wage pressure upwards. I don't think the RMB is pegged to the dollar. Certainly not like Hong Kong, which is an actual peg. The RMB has fluctuated between 6.2 and 7.3 the past few years. China does limit its daily level of change, though.