Wednesday, December 01, 2004

China steady on the peg

This from the Asia Times. Analysis of imperialism from Chinese perspective. Useful. Click on the title to link to full, lengthy, article. - PolPop

By Henry C K Liu

Chinese Prime Minister Wen Jiabao has criticized the US for not taking measures to halt the dollar's slide and made it clear that China would not revalue the yuan under pressure. "You must consider the impact on China's economy and society and also the impact on the region and the world," Wen said in Laos late Sunday on the sidelines of the Association of Southeast Asian Nations (ASEAN) meet when asked about pressures to change the yuan's decade-old peg to the dollar. Wen also signaled that speculation was too rife in the market at the moment to make such a change.

The announcement was timely as China stands at the crossroads of economic destiny, the direction of which will determine if it will be the latest victim of bankrupt neo-liberal ideology or the sole survivor that manages to develop an effective immunity from the deadly financial virus of dollar hegemony that regularly assaults all economies. On a strategic level, China, the most populous nation on Earth, cannot possibly expect to develop toward world-class living standards by exporting to a rich minority of the world's population. The poor economies' excessive dependence on export to the rich economies under dollar hegemony will perpetuate the maldistribution of wealth on a global scale and put China permanently on the lower end of that scale. . .


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