China currency must rise to fix imbalances

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China currency must rise to fix imbalances

  1. 1. Weekly News: Economic Times<br />
  2. 2. China currency must rise to fix imbalances: Soros (9 Oct, 2010, 09.04PM IST,REUTERS)<br />Global currency system "lop-sided" and "controlled" by China.<br />Chronic (trade) surplus in China and big deficit in the United States.<br />Asian giant to allow its currency to appreciate.<br />China has kept its yuan currency undervalued in a managed float to keep its exports competitive.<br />Weak US dollar and relatively strong currencies elsewhere could push nations into a round of currency depreciations to help their exports.<br />China's currency should be allowed to appreciate, but a sudden jump of 20 per cent or more would lead to reduced exports and unemployment in China, reducing consumption there.<br />
  3. 3. The return of ‘great power politics’(8 Oct, 2010, 10.18PM IST,REUTERS)<br />The growing power of emerging economies -- particularly China, Russia, India and Brazil -- is redrawing the priorities of foreign and defence ministries, driving financial markets and reshaping the global business environment.<br />Former US Secretary of State Henry Kissinger compared the approach of powers "emerging into confident nationhood" to those of states in the 19th or early 20th centuries. <br />The rise of China in particular is putting international relationships and systems into flux.<br />Chaos may occur but when it does it will sooner or later settle down to some new order.<br />It was essential that statesmen managed this process well to "save humanity from untold suffering". <br />
  4. 4. Vodafone buys 2 telecom expense management firms (8 Oct, 2010, 01.06PM IST,AGENCIES)<br />Vodafone is spending $9.7 million to buy two firms specializing in managing telecom expenses.<br />It is buying Australia-based Quickcomm for $6.9 million and US-based based TnT Expense Management for $2.8 million.<br />Quickcomm has offices in the United States , Britain and Singapore, while TnT has offices in Britain, Germany and France. <br />
  5. 5. US closely watching Chinese steps on currency: White House(8 Oct, 2010, 12.01PM IST,PTI)<br />The US is closely watching steps taken by China on revaluation of its currency, that is highly undervalued.<br />The Obama Administration believes that China needs to take steps on rectifying its currency value.<br />The House of Representatives recently passed a legislation pressing for retaliatory measures against the currency manipulation by China.<br />Congress bill on Chinese currency was the first concrete action to fight back against China's rigging its currency.<br />China's subsidies, their currency manipulation, all of this is a real threat.<br />

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