Using its currency to buy up outside capital will not help keep the Chinese currency cheap. It may reflect a view that China will evolve from being a low wage desitination of offshoring to joining the ranks of advanced capitalist nations with wages higher than those of the poor nations. It may also reflect the fact that China lacks the natural resoures to sustain a continual rapid growth of domestic manufacturing.
We have some real Chinese experts -- I don't even play one on tv -- what do you think? -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
