25.04.2006
Hu Jintao's US-trip brings no change in the Chinese currency regime
The US-trip of China’s president Hu Jintao of last week has brought no real breakthrough in the Chinese-American relationship and the forex markets were quick to react. The Chinese currency yuan lost 0.6% against the US-dollar during the first hours of the meeting of the political leaders. This may underline the fact that the US is currently loosing influence over China in both political and economical matters.
In fact, Hu Jintao’s visit demonstrated clearly that China was not so much dependent on the goodwill of the American government, but rather on a good relationship with leading US corporations. In the state of Washington, Hu Jintao was received by Microsoft founder Bill Gates and the chairman of Boeing, James McNerney. China is said to have ordered software and aeroplanes representing a value of several billion US-dollars.
However, China’s diplomatic policy is not without risks. The country still faces great economical and political challenges. China is currently seen as the economic driving force for Asia. Consequently, a crisis might not only have disastrous repercussions for China itself but also for other Asian countries. The Asian crisis of 1997 was still different in this respect. The US consumer demand for Asian products had been able to prevent the worst-case-scenarios. Today, China is the most important trading partner for Japan and South-Corea and was also able to support the economic recovery of Japan. But since the Chinese financial markets and its week banking systems are still in the development phase, a crisis might well produce consequences which could not be prevented by an international agency, not even the International Monetary Fund.
Source: Finanz&Wirtschaft
you may also read this related Weblog topic:
China facilitates access to foreign currencies and financial markets
Search
Categories
Archive
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- December 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- July 2006
- June 2006
- May 2006
- April 2006
- March 2006
- February 2006
- January 2006
- December 2005
Last Entries
- SIX Telekurs wins Best Data Innovation Award 2011 from Systems in the City
- Xtrakter and SIX Telekurs agree to expand pricing data
- SIX Telekurs bolsters regional expertise in Tokyo office
- SIX Telekurs White Paper. Transparency in Evaluated Pricing.
- SIX Telekurs USA Names Cort Williams EVP, Sales & Business Development
- SIX Telekurs Offers Evaluated Pricing for Distressed Securities
- SIX Telekurs opens two computer centers at Equinix Inc. in Singapore.
- SIX Telekurs redefines its products and services categories.
- SIX Telekurs in partnership with TFG Systems.
- SIX Telekurs partners with Inforex S.A. to increase its market presence in Greece.