China actually has a smooth relationship with Korea, which is problematic for Taiwan as an outside player.
I think Taiwan would be hard pressed to support China's development while also fearing China is supplying the competitor(Korea)'s market.
I watched a fascinating program about Chinese manufacturing in the wee hours this morning, on France 24 (24 hour news network). They featured a textile factory where the workers worked 10-hour days, 6 days a week, and made $50 a month. The workers lived in apartments that they shared with multiple adults, for $5 a month rent for each resident.
But the main point of the piece was that a labor movements is growing in China, which is already changing that equation. As a result of this, the news piece said, China is investing in places such as Vietnam and Cambodia, to move their manufacturing.
I thought this was fascinating, because I had previously believed it was going to take longer for this to happen. Appraently, the shift is in its embryonic stages already.
And to keep things in perspective:
China / U.S. Foreign Exchange Rate 1980-present. Note, the currency is denoted in USD/RMB, just like the graph in the article. So a rise in the graph shows depreciating RMB. Also note, in 1980 the monthly wage for electrical engineer in China 35 yuan and rent for a 80 sq. meter apartment is 5 yuan a month.
And the big picture view:
USD has fallen overall against world's major currencies since it come off the gold standard in 1973. (Note it's steep rise in the 1980s and steep fall in 2000s)
However, it gains substantially against worlds currencies since the 1980s.
Actually the chart titled "Falling renminbi against U.S. dollars over the last two years" actually shows rising RMB vs. USD. The 6 point something figure shows amount of RMB a dollar you theoretically can buy if you are a big bank. (you milleage will vary at money exchanges in malls and airports). Thus a falling rate of USD/RMB illurstrates a rising RMB or Falling USD. You can resolve that question by looking the dollar index, (http://www.bloomberg.com/quote/DXY:IND), which shows that USD is raising against world currencys (thanks to Euro crisis). Thus, in the past two years, Renminbi has been rising not falling over the last two years.
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