From the Readers
Right strategy against US
(China Daily)
Updated: 2010-10-25 07:53
 |
Large Medium Small |
The United States should think about the long-term consequences of pressuring China into a quick currency revaluation beyond the US mid-term election.
It should realize that a forced revaluation of the yuan could result in a drop in exports from China, which could cause major job loss at US' ports and inland transportation services. It could also result in a fall in the purchase of US Treasury Bonds by China, which may propel higher interest rates in the US. The resultant rise in the prices of commodities at Walmart and other major American importers may cause inflation and a drop in US nationals' purchasing power.
The US government used the same strategy of protectionism in 1929, which led to a 25-year economic depression.
I feel by "the law of political expediency" is replacing the goal of reaching a win-win situation. US politicians always do whatever it takes to achieve a goal today, leaving others to deal with tomorrow's consequences. I am thankful that China has taken a more strategic economic perspective.
David P. Reichwein, via e-mail
Readers' comments are welcome. Please send your e-mail to opinion@chinadaily.com.cn or letters@chinadaily.com.cn or to the individual columnists. China Daily reserves the right to edit all letters. Thank you.
(China Daily 10/25/2010 page9)