is that a more valuable Yuan is not only conducive to global economic stability, but also to its own economic well-being. In fact, the artificially cheap Yuan may have actually worsened the economic downturn in China, because de-incentivized the creation of a domestic economic base. Now that overseas demand has dried up, it is left feeling the consequences of this neglect. The San Francisco Chronicle reports:
With China far too dependent on export-driven growth, it is now extremely vulnerable to the current steep decline in global export demand. Unless that structural imbalance is fixed, China’s long-term growth prospects are as bleak as those of the United States.
Read More: Undervalued currency helps, hurts U.S. economy
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