An interesting article. One issue that will occur when their rebalancing takes place is increased cost of importing Chinese goods. China has deliberately kept their currency undervalued and so been able to underbid the West, thus all those cheap goods made in China could soon rise in price as they start to pay higher wages. Higher prices cannot be avoided because so many goods are now produced in China and not domestically.
__________________
Spiced_Rum
"The only rocks I want to see are in my glass, and covered with lashings of Spicey and Coke" 
|