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Old May 28th, 2009, 08:30 AM
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katlady katlady is offline
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Part of the reason for China growth is they tied the currency (yuan) to the US dollar. When the dollar was down the Yuan was down and what that did was make their products cheaper in eurpore. So they were exporting things to the eurpore nations, but not importing goods into he country. This made it difficult for other countries to compete. Also the US had low inflation at the time so tied the Yuan to the dollar meant the they had low inflation. In a country with economy growth this is normally higher inflation it's one of the big concern. Other concern with China is as it grows each family is now owning a car. The is increasing thier need for Oil, which is why the Russian government handling for Yukos (oil company) was a problem for China. China got much of their oil from Yukos. I think Russian Government disbanded and took over Yukos for two reasons: 1. the CEO opposed the current Preisdent of Russian, and 2. the Government wanted the money from selling oil to China. BTW don't get to caught up with China and forgot about India. These two countries are the international power players. China got pressure from other nations and has started to "float" their Yuan so that is better for everyone. I don't worry to much about the USA this downturn has had some postive effects. People are bugdeting thier money again,learning how to save, and not depending so much on credit. These are good for the country as a whole.
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