nice post Shikari thankspertinent point being. they insulate...

nice post Shikari
thanks
pertinent point being. they insulate themselves from loss of global market while boosting the domestic market.
result
further pressure on the US

Higher labor costs would cut Chinese export competitiveness while boosting domestic spending power and sustaining economic growth, according to the bank. Premier Wen Jiabaos government has been pressed by U.S. and European officials to end a 19- month yuan peg to the dollar to help diminish trade and investment imbalances that contributed to the credit crisis.



Wage increases are a better option because they largely benefit Chinese workers, Tao Dong, a Credit Suisse economist in Hong Kong who has covered the Chinese and Asian economies for more than 15 years, said in an interview yesterday. Currency appreciation will only result in Chinese exporters losing out to competitors in countries such as Malaysia and Mexico.