Why should European Union recognize China as a market economy when China is the worst currency manipulator?
Posted by admin in Finance Wednesday, 12 October 2011 16:28 2 Comments
China has been demanding of the EU to recognize it as a market economy. The same was asked of Brazil and several other countries but none has relented. How does China expect the world to recognize it as a market economy while it keeps manipulating its currency? Not to say of the numerous entry barriers that it has erected for the foreign players in the Chinese market.
China’s financial system is immature.
If the yuan is free to float it will be attacked by international currency speculators. What China needs now is stability. All governments manipulate currency. Usa printing 600trillion to devalue its currency is a perfect example. No country in history has printed this much money to devalue its currency. So by your logic, usa is the biggest currency manipulator.
The EU should not recognize China as a market economy.