Saturday, February 13, 2010
China's comments on Economy
Recently the US has spent 6$ billion on weapons to Taiwan. This angered China because China believes that Taiwan is a part of China. The US did this to catch the eyes of China because they are completely ignoring them in debates like Iran, North Korea and Climate change. President Obama said that the Chinese currency is kept at an artificially low level to give China an unfair advantage is selling exports. China wasn’t so pleased when they heard President Obama say this. Some of what he did say was accurate though, like when he mentioned the currency to help them with their exports it’s because the Chinese currency is 25 to 40% compared to the US dollar and to other countries. The Chinese currency is still rising due to the max amount of exports being shipped out. The biggest buyer from the Chinese would be the US, but China also has 2.4 trillion in foreign exchange reserves. President Obama hopes to change this by making more jobs to hopefully make more exports. China likes to have a cheap currency, and that Chinese leaders have been impatient with the economic policy from their own chief debtor. Like mentioned earlier that the selling of weapons to Taiwan angered the Chinese but also Secretary of State Hilary Clinton also criticized China for censoring the Internet and Google for hacking. The US could be doing this on purpose as a strategic opportunity to catch China off guard from their economy, while the US could be working on theirs. But I also think this was also done just to get their attention for help them with other important debates.
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