8 ms·

Thats a feature not a bug. The Chinese government spend a lot of money keeping the value of the RMB low.

• irishcoffee 9mo ago
  This is actually an interesting point. Wouldn't it be bad for China if the US isn't the reserve currency/the RMB gains a lot more in value relative to the USD? It would proportionally, negatively, affect their export profits, no?
  • qwytw 9mo ago
    Germany did relatively fine though? Despite the German mark being the second largest reserve currency and their economy being heavily reliant on exports.
    • irishcoffee 9mo ago
      Mostly it’s just what I’ve read, I don’t know if it’s true, which is why I asked. If you get less yuan-people-hours per dollar (and materials cost increase for the same reason), you would get less per dollar than previously, I think? Eventually you hit an inflection point where it’s cheaper to manufacture elsewhere. Which is why China is working Africa, huh? Interesting stuff, in a vacuum.
  • KaiserPro 9mo ago
    It would make Chinese manufacturing more expensive for both home and abroad. china's whole deal is to be the world's manufacturing and science plus it would make Chinese debt more expensive as well.