China: the yuan's rise may cause a global disaster





The Chinese Premier, Wen Jiabao, the Chinese currency float, "yuan"could cause a global catastrophe, and in response to international claims, and especially American Beijing that the Chinese currency float.
The Wen Jiabao, during his time in Europe earlier this week that the Chinese exporting companies, do not achieve a large profit margin, and therefore can be caused by a fatal injury, and may cause a wave of social unrest.

That the expert in the Chinese economy to the "Capital Economics", Mark Williams, said Thursday that the margin of export to Chinese companies did not back down when the Chinese Government relaxed restrictions on the yuan against the dollar, but increased its value against the dollar around 20 per cent, compared what has already happened between the 2005 and 2008.

He added that "Since most companies and institutions were able to lift either the price or productivity, the profit margin has not declined at all" when the value of the yuan against the dollar, while the price of the final product, as well as shares of Chinese companies.

The Chinese government expects to focus on rebalancing the economy away from exports in economic policy during the time of the meeting is expected later this week.

Although the meetings of the International Monetary Fund, and the top twenty over the next month, it is expected that there will any amendment to China's currency policy.

This, according to Chinese News Agency "Xinhua"Monday that the average trading range for the yuan rose to 6.6732 yuan against the U.S. dollar, according to data released by the Center for Foreign Currency Trading Chinese, pointing out that this average exceeds the counterpart of $ 6.6830 on the eighth of October.

The United States has made in September last discontent and concern of the Chinese government's support for its currency and keep it low against the dollar, especially after the country eased Beijing's restrictions on its currency against the dollar last June, by allowing the yuan to float, but it did not rise by only One percent.

Raised a debate about the value of the yuan, and that less than its true value by 30 per cent, which means that China has pumped large amounts of currency in the market to maintain its value without the real value.