Re: http://www.economist.com/opinion/displaystory.cfm?story_id=14587027
The Economist really needs to take the perspective of Beijing when questioning the Yuan’s value.
China, if I am not mistaken, is the largest holder of US Treasury bonds. When the developed economies of the world are slumping, it is in everyone’s interest to align devaluing the Yuan with renewed developed world growth. Pre-empting this is flawed. To devalue the Yuan is to shred the worth of China’s investments overseas at a time when much of the world is relying on Sino stability to restore many a bruised western economies.
Luckily for the pragmatists out there, China will not listen to The Economist’s ill-thought advice.
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