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This. All the talk about about trade or industrial might is pointless if the Yuan isn’t fully convertible and the exchange rate floats. And China isn’t going
by refurb 1y ago
This.
All the talk about about trade or industrial might is pointless if the Yuan isn’t fully convertible and the exchange rate floats.
And China isn’t going to do that any time soon because of capital flight out of China and the artificially low Yuan pumps exports.
- franktankbank 1y agoGood for their Citizens then. Take your time China, elevate your middle class with your economic might and show the world what you can become. Falling into the economic trap of what becomes open borders may not be in your favor past a few generations of the upper class.
- seanmcdirmid 1y agoIt is a mixed bag for citizens. If they want to go abroad or buy something abroad, they have to go through a complex dance to get the dollars they need. In the past this was harder, then easier, then harder again...so whatever. It makes moving abroad more appealing to some Chinese (so they can earn a convertible currency rather than yuan), which isn't ideal for the Chinese government. I definitely don't think they should move to a convertible currency without a more stable financial system. They also rely on yuan being saved in China (because you can't invest your money easily outside) to drive cheaper investment capital in China.
- refurb 1y agoWhat does open borders have to do with currency?