Comments on: Yuan-dollar rate doesn’t drive Chinese rebalancing http://blogs.reuters.com/breakingviews/2010/06/21/yuan-dollar-rate-doesnt-drive-chinese-rebalancing/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: The1eyedman http://blogs.reuters.com/breakingviews/2010/06/21/yuan-dollar-rate-doesnt-drive-chinese-rebalancing/comment-page-1/#comment-2937 Tue, 22 Jun 2010 17:51:45 +0000 http://blogs.reuters.com/columns/?p=3337#comment-2937 Yuan-dollar rate doesn’t drive Chinese rebalancing.
The majority of goods shipped from China are not manufactured in China usually they are assembled there.
Most of these assembly facilities have long term contracts with companies whose parents are located outside China.
With over a billion people to house and feed it is not surprising that there manufacturing cost are increasing hence the parents will be looking for more cheap labor facilities.
However, this option is limited as there is no other country; with such a vast reasonably well educate labor supply.
Hence we can all look forward to increased cost of cell phones and washing machines to name a few items.

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