Transcript WTO Rules Against China`s Limits on Imports

Chinese Government Institutions
04/10/13
1. Identify the function and structure of major
Chinese institutions.
2. Explain the role of personal connections for elite
recruitment in China.
3. Identify examples of devolution in China.
4. Explain how the link between the Chinese military
and the Communist Party.
THE US AND CHINA
March 9, 2011, 1:04 pm
Obama Officially
Nominates
__________Ambassador
to China
An introduction to China . .
http://news.bbc.co.uk/2/shared/spl/hi/in_depth/china_mod
ern/html/3.stm
Sovereignty, Authority, and Power
China is a _____Party-State
Apex:
Standing
Committee;
p______/
National Party
Congress
Apex: Standing
Committee of
National People’s
Congress
Government
Party
“p_______ hierarchies”:
All gov’t exec. , leg and adm. agencies are matched by a corresponding party organ.
Parallel Hierarchies: for each institution in the government, a parallel one exists in
the party and military; party members hold government positions (eg Hu is Party
Secretary, President and head of Military)
Now Hu
Now Hu
INSTITUTIONS:
Click on the boxes
to read about the
bodies that rule
China
http://news.bbc.co.uk/2/shared/spl/hi/asia_pac/02/china_party_congress/china_ruling
_party/how_china_is_ruled/html/defaulta.stm
October 2007: Party delegates -- 2,200 in all -- attended the
opening ceremony of the week-long event, which is held once
every five years—so which one is this?
October 15, 2007
Communist Party Congress Opens in China
BEIJING, Oct. 15 — Delivering the opening address at the ruling
Communist Party’s 17th National Congress today, President Hu Jintao
promised to address social fissures, a degraded environment and rampant
corruption during his second term as China’s top leader, but he all but
ruled out more than cosmetic political reform.
Mr. Hu spoke extensively about his “_______ view of development,” a
set of lofty, vague principles supporting “h__________economic, social
and political development.
The congress will enshrine the phrase “scientific view of development”
into the party’s constitution alongside the political slogans of Mao,
D________Xiaoping, and J________Zemin, elevating Mr. Hu into the
pantheon of leaders as he begins the second and final term as party
general secretary, head of state and military chief.
Inside the hall, last-minute preparations
for the congress included pouring tea for
the officials
At the Communist Party Congress in Beijing, where delegates
voted during closing ceremonies, three officials, including Vice
President Zeng Qinghong, gave up their positions on Sunday.
As part of the fanfare accompanying the start of the Chinese
Communist Party's 17th National Congress at the Great Hall of
the People in Beijing, a conductor led a performance by a military
band
The former Chinese Communist Party
Chairman Hua Guofeng, top left, slept
during the lengthy proceedings
Political groups
Communist Party of
China (2,099)
United Front
Democratic Parties &
Others (888)
The N PEOPLES C consists of about 3,000 delegates. Delegates to
the National People’s Congress are elected for ______-year terms
via a multi-tiered representative electoral system. Delegates are
elected by the provincial _________'s assemblies, who in turn are
elected by lower level assemblies, and so on through a series of tiers
to the local people's assemblies which are directly elected by the
electorate. For these 8 parties see: http://english.gov.cn/about.htm
Hu Jintao, the Chinese president, inspected troops Saturday in Hong
Kong, which was set to celebrate the 10th anniversary of its return to
China on Sunday.
Elites
key to elite recruitment is “g______”
You must work your way through the _________
PBSC is picked by the P which is picked by the NPC
news flash: “One of the most important political changes in China over the
past 30 years has been a move away from the vicious factional strife of the
Maoist era, a tendency that persisted well into the 1980s and fuelled the prodemocracy upheaval of 1989. In 2002, for the first time in China’s communist
history, power was smoothly __________from one set of leaders to another
without killings or purgings.
BIG deal. When is the current 4th generation’s term up?
http://www.economist.com/displayStory.cfm?story_id=12758848
Who’s Hu in China
Zeng Qinghong, right, China’s reputed political mastermind retired in 2007) ,
with President _____Jintao, left, and Premier _____Jiabao at a meeting in
March NYT 10/3/06
FYI: Vice-President ______ Jinping is heir-apparent to President Hu Jintao
Elite names to know
Chinese President _____Jintao,
left, and former president
_______Zemin. The two men
appeared on a rostrum with all
the other members of the
Po___________and
C__________Committee,
arranged in precise hierarchical
order
State mtg:
http://www.bbc.co.uk/news/worldus-canada-12228919
Vice President
______Jinping, center, in
Canberra, Australia, in
2010. He has spent much of
his career in China’s
booming east.
BEIJING — President _____Jintao of China returned home this weekend after a trip intended to
repair relations with the United States. But the next time the White House marches out the honor
guard and polishes the crystal for a Chinese leader, it is unlikely to be for Mr. Hu.
Following a secretive succession plan sketched out years ago, Mr. Hu has already begun
preparing for his departure from power, passing the baton to his presumed successor, a former
provincial leader named _____Jinping, now China’s _______president..
Mr. ______ (his full name is pronounced Shee Jin-ping) climbed the ladder by
building support among top _______officials, particularly those in Mr. Jiang’s clique,
all while cultivating an image of humility and self-reliance despite his prominent
f______ ties, say officials and other party members who have known him.
The “Princelings”
An important but informal politically influential group in China are the so-called
“princelings.” This group consists of relatives (most frequently, the sons and
daughters) of senior Chinese government officials who use their family relationship
to obtain access to privilege, positions of power, and wealth—often by
circumventing the official channels and procedures. For many people in China, the
“princelings” represent that type of “class privilege” that the Cultural Revolution
was supposed to eradicate. Because their access to power and privilege is seen not
necessarily to be based on merit, some view the “princelings” at least as a minor
source of corruption and at worst as a serious threat to the Party’s legitimacy with the
public.
The “princelings” have chosen different avenues to power in China. Some have used
their access to better education and job opportunities to become important figures
within the Party or the government. Others chose to focus their energies on obtaining
economic power by establishing private companies (often by securing special loans
from state-run banks) or being appointed the leading officials of important state-run
enterprises
Although some of the “princelings” have used their preferential access to
power for social causes, some have been accused of serious corruption.
Deng Pu-fang, son of Deng Xiao-ping and himself a paraplegic,30 is
widely known in China as a leading advocate for the rights of the
handicapped. Hu Hai-feng—son of President Hu Jin-tao and party
secretary for Tsinghua Holdings, a multibillion dollar state-owned
conglomerate, was accused of bribery by the Namibian government
during the summer of 2009.
See you tube on princilings and
http://www.chinahush.com/2010/10/21/sue-me-if-you-dare-my-dad-is-ligang/
http://www.nytimes.com/2011/01/31/world/asia/31china.html
“My father is Li Gang” has become a bitter inside joke, a catchphrase for
shirking any responsibility — washing the dishes, being faithful to a
girlfriend — with impunity
Levels of Government: SupRAnational?
The World Trade Organization (WTO) is an international body
whose purpose is to promote _____ trade by persuading
countries to abolish import t_________ and other barriers. As
such, it has become closely associated with globalisation.
The WTO is the only international agency overseeing the rules of
international trade. It polices free trade agreements, settles trade
disputes between governments and organises trade negotiations.
WTO decisions are absolute and every member must abide by its
rulings. So, when the US and the European Union are in dispute over
bananas or beef, it is the WTO which acts as judge and jury. WTO
members are empowered by the organisation to enforce its decisions
by imposing trade sanctions against countries that have breached the
rules.
Membership of the WTO now stands at 149 countries. China formally
joined the body in December 2001 after a 15-year battle. Russia
wants admission, but must first convince the EU and US that it has
reformed business practices. (note—provisional permission to get in
has been granted) news flash Russia is in
http://news.bbc.co.uk/1/hi/world/europe/country_profiles/2429503.stm
W.T.O. Rules Against China’s Limits on Imports
Pirated DVDs, sold openly at a market in northeast China, cost less than $1,
August 13, 2009
which is steep competition for legitimate discs.
W.T.O. Rules
Against
China’s
Limits on
Imports
By KEITH BRADSHER
HONG KONG — The World Trade Organization gave the United States a victory on
Wednesday in its trade battle with China, ruling that Beijing had violated international
rules by limiting imports of books, songs and movies.
The W.T.O. panel decision in Geneva buttresses growing complaints from the United
States and Europe that China is becoming increasingly nationalistic in its trade policies.
It also offers some hope that China will remove its restrictions on media and reduce
rampant piracy of intellectual property, though the country can appeal.
Levels of Government: from the Economist
Decentralisation of power is substantial BUT . . . .
Given China's geographical size—the People's Republic of China is almost as big as the US—
and the extent of some of its provinces, local authorities have historically enjoyed a high
degree of devolved power. Sometimes this has led to chaos, notably during the Cultural
Revolution that took place during the 1960s and 1970s. However, more often experiments at
the local level have been able to function as pilot projects; agricultural schemes in Sichuan, for
example, paved the way for the national reform programme of the early 1980s.
Since then, the devolution of control has continued. Regional governments have become
major stakeholders in many local enterprises (TVEs) and have sought to maximize
employment, output and revenue-raising opportunities in areas under their jurisdiction,
sometimes acting counter to central government policy.
Some observers argue that devolution is irreversible and that the government will eventually be
reorganised along federal lines. However, the central government is far from powerless and
can intervene to enforce compliance with its main policies. The promotion prospects of local
officials depend on their ability to meet targets based on the government's policy guidelines.
Moreover, the central authorities can still exercise considerable influence through their ability
to appoint and remove leading local officials, and provincial governors are frequently
reshuffled to prevent them from "going native". The September 2006 dismissal of Mr Chen as
Shanghai CCP secretary was at least in part an attempt to rein in provincial governments
perceived as failing fully to implement national policy.
Institutions: the military
Thousands of soldiers and rows of tanks commemorated 60 years of
Communist Party rule during National Day celebrations in Beijing. Female
officers and soldiers of the People's Liberation Army marched during the
military parade
The anniversary party's overarching theme echoed the words Mao
spoke after forcing the Nationalists to surrender Beijing in 1949.
"Ours will no longer be a nation subject to insult and humiliation,"
Mao said. "We have stood up." People's Liberation Army naval
officers marched past Tiananmen Square.
People's Liberation Army soldiers
marched down Changan Avenue
prior to the military parade
People's Liberation Army soldiers marched past
Tiananmen Square.
From the displays of advanced weaponry to the celebration posters
highlighting Shanghai's forest of skyscrapers, the unmistakable
message of the celebration was that Mao was right and that the
Communist Party is carrying all China to prosperity and worldwide
respect.
China's leaders and spectators waited at Tiananmen Gate
before the start of the parade. The gate, known as the Gate
of Heavenly Peace, is where Mao declared the Communist
Party's victory in 1949.
Military
Mao: “Political power grows out of the b
________ of a ______. Our party
commands the gun and the gun must never
be allowed to command the party.”.
Link b/w Military and politics:
Officers and men swear allegiance to
______ and state.:
PLA officers are also ____ members
a separate Party machine inside the
military makes sure rank and file stay in
line with Party thinking
Market Reform in China: Creating a “Socialist Market Economy”
“_______cat, White Cat, it doesn’t matter what color the cat is, as long
as the Cat catches________”
“to get rich is glorious“
\
"poverty is not Socialism"
“Socialism with Chinese
Characteristics"
“ENGELS never flew on an aeroplane;
Stalin never wore Dacron.”
Deng’s words meant Maoist dogma was out
and pragmatism was in.
http://www.economist.com/displayStory.cfm?story_id=12758848
Architect: _________Xiaoping
Time: early 19______s
Characteristics:
•Perestroika without_________
•"Crossing the river by groping for
stones"
•Strong state model continues in
planning and ownership
How: Two Pillars
One: Decentralize the economy by:
(A) Shifting authority for decision making from central bureaucrats to individual
families (first through the “__________responsibility system), factory managers, local
governments (“T__ ___”s) and private entrepreneurs:
(B) recognizing diverse forms of _________rights
•in 2001 Jiang invited so-called "red _______s" - private entrepreneurs and high tech
barons - to join the Party –
•March 2004, NPC changed constitution so that it says “Citizen’s
Lawful p_________ _________is inviolable” and that the state will protect private
property and give compensation when it is confiscated”
•March 2007 a law was passed that for the first time enshrines private property rights
(C) Most prices set by s________ and d__________, not administrative decree
(D)_________ of law: So far, the main change is a gradual regularization of
commercial law
Note that this is limited Privatization: diminish (NOT
eliminate) state owned factories
Number of TVEs (millions)
Gross output of TVEs
Contribution of TVEs to rural income per capita
Sources: China Statistical Yearbook, 1997,
1998. The Yearbook of Chinese ________and
Village Enterprises, 1995, 1996 1997, 1998.
China Economic Yearbook, 1997, 1998.
China to Freeze Energy Prices in an
Effort to Quell Worries About Inflation
1/10/08 BEIJING — Prime Minister Wen Jiabao responded Wednesday
to growing public anxiety about inflation by announcing that China
would freeze energy prices in the near term, even as international crude
oil futures have continued to surge.
Inflation has hit an 11-year high in China, and a recent nationwide public
opinion survey found that “rising prices of consumer goods” ranked as
the top public concern, followed by income inequality and corruption.
The freezes were announced on the government’s main Web site after Mr.
Wen presided over a meeting of the State Council to revise policies on
price controls. But the controls are unlikely to get at the causes of
China’s inflation — a currency policy that keeps the yuan artificially low
and an overheated economy in which demand for goods and
commodities often outstrips supply.
See . . . This is still not a free market
This week, China also announced national regulations to help clean up
the environment and slow the country’s growing addiction to imported
oil by focusing on a ubiquitous but unexpected target: the plastic bag.
On Tuesday, the State__________ banned production of ultrathin plastic
bags and required store owners to charge customers for thicker plastic
bags. The move, which takes effect June 1, is intended not only to fight
littering, but also to reduce oil use. Chinese media have reported that
China uses about three billion plastic bags every day. Creating this many
bags requires 37 million barrels of crude oil every year, according to the
Web site of China Trade News.
“Our country consumes a large amount of plastic bags,” stated a circular
posted Tuesday on the central government’s main Web site. “While
convenient for consumers, the bags also lead to a severe waste of
resources and environmental pollution.”
But for all the attention the government has drawn to the bags, their
production represents less than a week’s worth of Chinese oil
consumption.
TWO: Opening China to the outside world by . . .
(A) Increasing trade with a focus on “ex_______ lead”
growth
(B) encouraging foreign investment (e.g create Special
___________Zones (SEZs))
SEZ and
One Country . . .. .
_______ Systems
Jiang Zemin’s ________Represents
(1) the most advanced forces of production [Read: allow
entrepreneurs and professionals to become Party members]
(2) the most advanced forces of culture
(3) the fundamental interests of the broadest number of people
(including c___________s GULP!)
Hu’s “______________s Society”
October, 2006: The annual meeting of the ruling party’s
Central Committee formally adopted President Hu
Jintao’s proposal to “build a harmonious socialist
society,” a move some analysts said was one of most
decisive shifts in the party’s thinking since Deng
Xiaoping accelerated the push for high growth rates in
the early 1990’s.
The leadership declared that a range of social
concerns, including the surging wealth gap, corruption,
pollution and access to education and medical care,
must be placed on a par with economic growth in party
theory and government policy. . . . The catch phrase
covers a range of policies intended to restore a balance
between the country’s thriving market economy and its
neglected socialist ideology, primarily by paying
greater attention to peasants and migrant workers who President Hu Jintao, left, and
have benefited much less than the white-collar elite in Premier Wen Jiabao have called
for "harmonious society" and
China’s long economic boom.
"social stability."
Washington Post
RESULTS
Well, uhh did you get this one
yet?
Results: Poverty rate
overall has:
But even as officials trot out a litany of achievements
they attribute to the country’s “_____________and
opening” policy—200m fewer citizens living in
poverty, a 6% share of global GDP compared with
1.8% in 1978, a nearly 70% increase in grain
production—the world’s financial crisis weighs
heavily on their minds, and their leaders are struggling
with unfinished business
Results: The Gap between the _______ and poor grows
A man begs in Shanghai as wealthier
residents pass by. Today, some experts
say, success has become a secular
religion, reinforced by official messages
of opportunity
Living the good life in China:
Angelina Lei, 5, begins training
early. NYTimes
Results: Broken Iron _____bowl
BBC: . . .. a Chinese idiom which referred to
the now abolished system of guaranteed
lifetime employment.
After the Communists came to power, all workers
and farmers were put under state control.
Their work units controlled every aspect of daily life,
including the allocation of housing, food and
clothing. They also decided who could marry and
when, and who was allowed to have children.
Jobs for life are a
thing of the past
In return, work units would look after their workers
for life.
But China's transition from a centrally planned
economy to a market economy has smashed the old
guarantees.
Millions of workers have been laid off as state-run
firms have been restructured or shut down.
This has sparked angry protests from their workers,
who complain they have been left without the
welfare
Economist October 2007
Missing the barefoot doctors
Results: growing
rural/_________ income
gap and r________ gap
As this Dec 2008 Economist article shows, it is
NOT a free market still
Liberal Chinese economists complain that the country still falls well short of what they
would call a market economy. The currency is not fully convertible, so capital flows in
and out of the country are controlled. So too, still, are some prices, including those of
electricity, fuel and water. In January the government imposed new controls on some food
prices. It lifted them again this month. Non-state-owned enterprises are now producing
two-thirds of China’s manufacturing output, but SOEs dominate key sectors such as
banking, telecoms, energy and the media. Between 2001 and 2006 the number of SOEs
fell from 370,000 to 120,000, but this still left assets worth $1.3 trillion in state control.
There is much more work to do.
Results . . They now have a
________ market—in a
communist country . . Huh?
The challenges are closely intertwined. Like Mr.
Greenspan nearly a decade ago, Zhou Xiaochuan, the
current governor of the People’s Bank of China, faces
the knotty question of what to do about a speculative
mania that has drawn millions of people with limited
investing experience into betting their savings on the
stock market. May 25 2007
Results: growth in ___________ products
A couple buying
decorations in Beijing
for the Chinese New
Year 2006. Economists
say consumer spending
is becoming more
important to growth
Tho let’s not forget: China has
undergone __________ reform,
not ________ reform: Why you
could say it has experienced
p_______________ but not
g__________
Recession Elsewhere, but It’s Booming in China
The exhibition floor of the Guangzhou International Auto
Show in China. After decades of gorging on
consumption, Americans are saving. And the Chinese,
who economists thought were addicted to saving, are
spending more
Results:
F___________ D_____________
___________ up
Figure 3. Inward FDI in China (US$ billion), 1979–2004
Results: China is accepted into the__________ __________
___________
Results: Legitimacy issues so party tries . . .
“One China Policy”
Village elections
“Harmonious Society”
Results: _______imbalance for US
China and U.S. Debt
The largest portion of U.S.
debt, 68 cents for every
dollar or about $10 trillion,
is owned by individual
investors, corporations, state
and local governments and,
yes, even foreign
governments such as China
that hold Treasury bills,
notes and bonds.
Foreign governments hold about 46 percent of all U.S. debt held by the public, more than $4.5 trillion.
The largest foreign holder of U.S. debt is China, which owns more about $1.2 trillion in bills, notes
and bonds, according to the Treasury.
In total, China owns about 8 percent of publicly held U.S. debt. Of all the holders of U.S. debt China
is the third-largest, behind only the Social Security Trust Fund's holdings of nearly $3 trillion and the
Federal Reserve's nearly $2 trillion holdings in Treasury investments, purchased as part of its
quantitative easing program to boost the economy.
China’s trade surpluses and extensive intervention in currency
markets have led it to amass $2.27 trillion in reserves, mainly in
United States Treasuries, mortgage-backed securities and other
dollar-denominated investments, helping to keep interest rates low
and finance Americans’ borrowing. Chinese parsimony enabled
American profligacy.
Results
China overtakes US as world's
biggest CO2 emitter
Cyclists
pass a
factory in
Yutian in
China's
north-west
Hebei
province.
Photograph
: Peter
Parks/AFP
guardian.co.uk, Tuesday 19 June
2007
An industrial park built in Wuhai, in Inner Mongolia, along the Yellow River. In 1998, the
city had only 4 factories; now there are more than 400. But the rapid industrialization has
created a pollution nightmare for Wuhai, and with more development planned for the
area, the demand for water is expected to skyrocket
Beijing’s Olympic Quest: Turn Smoggy Sky Blue
Beijing residents in
Tiananmen
Square, used to
pea-soup smog,
ignored a citywide
stay-indoors
warning on
Thursday.
BEIJING — Every day, monitoring stations across the city measure air pollution to determine if the
skies above this national capital can officially be designated blue. It is not an act of whimsy: with
Beijing preparing to play host to the 2008 Olympic Games, the official Blue Sky ratings are the
city’s own measuring stick for how well it is cleaning up its polluted air.
Thursday did not bring good news. The gray, acrid skies rated an eye-reddening 421 on
a scale of 500, with 500 being the worst. Friday rated 500. Both days far exceeded pollution levels
deemed safe by the World Health Organization. In Beijing, officials warned residents to stay
indoors until Saturday, but residents here are accustomed to breathing foul air. One man flew a
kite in Tiananmen Square.
As China Roars, Pollution Reaches Deadly
Extremes
China’s industrial growth depends on coal, plentiful but polluting,
from mines like this one in Shenmu, Shaanxi Province, behind a
village store.
Perpetual Haze
During the three decades since Deng set China on a course toward market-style growth,
rapid industrialization and urbanization have lifted hundreds of millions of Chinese out
of poverty and made the country the world’s largest producer of consumer goods. But
there is little question that growth came at the expense of the country’s air, land and
water, much of it already degraded by decades of Stalinist economic planning that
emphasized the development of heavy industries in urban areas.
For air quality, a major culprit is coal, on which China relies for about two-thirds of its
energy needs. It has abundant supplies of coal and already burns more of it than the
United States, Europe and Japan combined. But even many of its newest coal-fired
power plants and industrial furnaces operate inefficiently and use pollution controls
considered inadequate in the West.
Expanding car ownership, heavy traffic and low-grade gasoline have made autos
the leading source of air pollution in major Chinese cities. Only 1 percent of China’s
urban population of 560 million now breathes air considered safe by the European
Union, according to a World Bank study of Chinese pollution published this year. One
major pollutant contributing to China’s bad air is particulate matter, which includes
concentrations of fine dust, soot and aerosol particles less than 10 microns in diameter
(known as PM 10).
Trucks Power China’s Economy, at a Suffocating Cost
Spewing Soot While Waiting for Fuel Trucks often spend hours idling
in fuel lines, like these in Wuhan, sometimes for as little as five
gallons of diesel, because of shortages and rationing
Good interactive graphic from series “chocking on growth”
http://www.nytimes.com/interactive/2007/12/08/world/asia/choking_on_gro
wth_7.html#story3
Results: McDonald's
A busy upscale shopping district in downtown Shanghai.
Notice the advertisements for McDonald's, Coca Cola and
Pizza Hut. These and many other Western consumer goods
and chain restaurants have become pervasive in China's
larger cities
Protests in China . . . .
See youtube videos
Massive Rural protests
6 Nov
China's tough handling of
2004:
recent protests by
villagers in Taishi,
Paramilit
southern Guangdong
province, has thrown into ary
fresh doubt its claims to
troops
be introducing genuine
put down
democracy "from the
bottom up". BBC
an
uprising
Rural Protest
of
6 Dec
100,000
2005:
farmers
Police
in
shoot
Sichuan
dead
province
10 April
2005:
20,000
peasants
drive off
more than
1,000 riot
police in
Huaxi,
Zhejiang
province
14 Jan
2006:
Police
break up
protest in
Sanjiao,
11 June
2005: Six
farmers
die in a
fight with
armed
men in
Shengyou
, Hebei
province
29 July
2005:
Villagers
in Taishi,
Guangdo
ng try to
China overtakes Japan as world's second-biggest economy
http://www.bbc.co.uk/news/business-12427321
14 Fev 2011
http://www.bbc.co.uk/news/world-us-canada-12224578
Maybe ___________, but not glasnost
“Insist on the party’s leadership, governance by the people and
ruling the nation by laws,” Hu said.
How does China hold down the value of its yuan (
Buying Dollars to Keep the Dollar Price High
China has been interested in keeping the Yuan (Chinese Currency)
undervalued relative to the US Dollar, and the easiest way (if you
can afford it) to keep the Dollar price high, and the Yuan low is to
buy dollars from the open market.
A country like China, which runs a huge Trade Surplus can afford to
buy dollars in the open market to keep the demand for dollars high,
and push the dollar price upwards relative to the Yuan. This keeps
the Yuan undervalued.
Why Does China Wish to Undervalue the Yuan?
China’s engine of growth is exports. The lower the value of the
Yuan, the better it is for China’s exporters. Basically, if 1 Dollar
buys 7 Yuans, and a exporter sells a Chinese Shirt for 10 dollars –
he pockets 70 yuans. But if one Dollar was worth only 5 Yuans, the
exporter would only be able to pocket 50 yuans.
One of these lists is titled “Who might be Hurt by a Yuan Appreciation”
Another is titled “Companies Which Would Benefit from a Yuan
Appreciation” Which is which?
•U.S. manufacturers of capital equipment, such as Caterpillar (CAT) and Deere
“Companies Which Would Benefit from a Yuan
(DE),.
•Wholesale food exporters
like Archer-Daniels-Midland Company (ADM),
Appreciation”
DANONE, and Chiquita Brands International (CQB),
Western commodity manufacturers, such as steel companies like Nucor (NUE),
Arcelor Mittal (MT), and Wheeling-Pittsburgh (WPSC), who face less
competition due to higher Chinese prices.
Chinese airlines, such as China Eastern Airlines (CEA) and China Southern
Airlines Company (ZNH), who now pay less in Yuan for airplanes and aviation
fuels.
• Investors holding a lot of Treasury Bills or U.S.-dollar-denominated bonds.
•Mortgage providers like Countrywide Financial (CFC), Wells Fargo (WFC), and
Federal National Mortgage Association (FNM) would face higher rates, which
would decrease their business volume
•Mass-market retailers Wal-Mart Stores and Target Stores
“Who
might
beasHurt
by a Yuan
Appreciation”
•Electronics
producers
such
Dell (DELL),
Hewlett-Packard
(HPQ), Motorola
(MOT) and Nokia (NOK) who built factories in China and employed Chinese
workers to manufacture their products for the U.S. market.
The last two are ceramics, one from
the Shang dynasty and other from
the Ming(?) dynasty....they were in
the Ceramic Museum in the
Forbidden City.
The other pictures are of XinJiang,
the northwestern province of
China. If you need any more
pictures of Beijing, Shanghai, the
Forbidden City or anything else,
please let me know! :)
Under the hammer and sickle,
President Hu spoke for two-and-ahalf hours. Mr. Hu told the delegates
that "China is going through a wideranging and deep-going
transformation."