Tortola Capital covers Global Reaction to Chinese Export Success

Governments are taking policy action to curb China's artificial export advantage, reports Tortola Capital.
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.

# # #

Tortola Capital is focused on providing the most comprehensive and individualized financial planning and services available. As a full service wealth management and brokerage firm, we are able to focus on the needs, aspirations and legacy of each of our clients around the globe.
Source:Tortola Capital
Email:*** Email Verified
Tags:Tortola Capital, China, Investment, Currency
Industry:Business, Finance, Government
Location:Road Town - Ballast Bay, Tortola - Virgin Islands, British
Account Email Address Verified     Disclaimer     Report Abuse

Like PRLog?
Click to Share