Tortola Capital covers Global Reaction to Chinese Export Success

Jan. 16, 2010 - PRLog -- Could China be artificially boosting its exports by undervaluing it's currency? According to analysts at Tortola Capital, this is precisely what's happening. This explanation has been backed by complaints from across the globe. The United States and other governments explain that part of China's export success stem from currency controls and improper subsidies that give its exporters an unfair advantage against foreign rivals.

Washington has imposed anti-dumping duties on imports of Chinese-made steel pipes and some other goods, while the European Union has imposed curbs on Chinese shoes in an effort to curb this unfair advantage.

The U.S. and other governments also complain that Beijing keeps its currency, the yuan, undervalued. Beijing broke the yuan's link to the dollar in 2005 and it rose gradually until late 2008, but has been frozen since then against the U.S. currency in what economists say is an effort by Beijing to keep its exporters competitive. The dollar's weakness against the euro and some other currencies pulls down the yuan in markets that use them and makes Chinese goods even more attractive there, adding to China's trade surplus, explained Henry Marshall, CEO of Tortola Capital.

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