The China currency "Chinese Yuan" (Renminbi) is continuing to rise. The Chinese government are relaxing their control on their currency and letting the market to decide on the currency value.
What will happen on China ?
China may get import things cheaper, for example the electronic gadgets like iphone, ipad, Mac and others. And this indirectly benefited those gadgets producer countries as their sales increased.
Besides, imported raw materials are also included such as petroleum, coal and others. As, China is the largest coal consumer in the world.
Chinese products will become costly and more expensive to other countries.
The salary in China rises, thus, the production companies will shift their operation to other countries with cheaper labour, as China may no longer continue to dominate as the cheapest labour country.
What will happen to Others ?
Americans manufacturers will gain more from construction machineries, for example, carmakers could get profit from the cars, machines and others they make and sell in China.
Other developing countries may gain as multinational company (MNC) will shift the production line of raw material to cheaper labour countries.
Giants retailers chain like Wal-Mart Stores which depends heavily on China made products and sold in U.S. stores will be more expensive.
As the Yuan rise, consumer electronic gadgets could constraint the yearly price cuts. For example, cell phones, personal computers and other consumer electronics prices have been dropping 15% to 20% yearly and those products are mostly manufactured in China. So, the people's will pay higher for those goods and the price cuts will slow down.
interesting
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