American fear and anger towards China - Shaun Rein

Shaun Rein by Fantake via Flickr

Shaun Rein is shocked by the American fear and anger towards China, including the misplaced rethoric against China's currency, he reports in CNBC. "Many attribute China’s boom as a result of stealing American jobs and intellectual property, rather than efficient economic policies and hard work ethic."
Shaun Rein:

America needs to get more competitive at manufacturing to reduce our overall surplus, not blame China’s currency policies. Trade patterns are far more inelastic than many economists believe.
In fact, more than 70 percent of big American multinationals operating in China told my firm they did not want the renminbi to appreciate too much because it will cut into their profits. The majority also said they would increase costs to the American consumer or move to cheaper production areas if it rose.

More in CNBC, including Shaun Rein debate with American Secretary of Commerce Gary Locke.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch. 

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Scary China bubble develops in the US - Shaun Rein

Shaun Rein by Fantake via Flickr

Import into China is growing, the Renminbi might slight appreciate after the Christmas shopping is done and the government is addressing overheating in real estate, tells Shaun Rein Bloomberg. But the real problem is the China IPO bubble developing in the US. (Clip at the bottom of this message).

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Shaun Rein is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.

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Why strengthening of the RMB is wrong for the US - Janet Carmosky

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China played a key role in the emotions surrounding the US midterm elections. Janet Carmosky explains in Forbes why strengthening of the Chinese currency is wrongly on the wishlist of US politicians. And why it scares her when the US is losing its economic position.

So unless Wal-Mart wants to take a patriotic hit on its mark-up margins, a strengthening of the Yuan is just going to put consumer electronics, apparel, and housewares out of reach for America’s already depressed middle class. The manufacturing jobs will move to Vietnam, the Philippines, Bangladesh, Malaysia, and other such countries with lower wage costs than China.

The US should do what it is good at, she argues:

I’ll admit that the prospect of America losing its way scares me too. But I would counter the fear and discontent with a simple message: America never can and never will out-Chinese the Chinese. China saves. America spends. China runs its economy top-down, from highly strategic single-party rule. America creates new models, believes in bottom-up genius finding its way through an obstacle course to a market shaped by human desires rather than government purchase orders.

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Janet Carmosky is a speaker at the China Speakers Bureau. When you need her at your meeting or conference, do get in touch.

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US companies oppose rise of the Renminbi - Shaun Rein

Shaun Rein by Fantake via Flickr

US congress and other political bigwigs might be pushing China to appreciate its currency, but Shaun Rein asked US companies, and they see their interests hurt by a rise of the Renminbi, he writes in Forbes:

The next time you hear someone in Congress push to appreciate the renminbi, ask them why they would want to make prices higher for everyday Americans at Wal-Mart and take away profits for American workers when they need it most. That endangers America's economy as well as China's.

Yes, you are reading this correctly: a rise of the Renminbi hurts US interests. Shaun Rein recalls a recent meeting with the president of one of his clients:

I asked him what he thought about Congress pushing for appreciation of China's currency, the renminbi, or yuan. His immediate answer: "It would be the worst thing for my company." (His company is 100% owned by Americans, by the way.) First, he said, an appreciating renminbi cuts into his company's profits, which lowers bonuses, salaries and dividends for employees in the U.S. Why would anyone want to lower the profits of American companies during a financial crisis?

Second, an appreciating renminbi also would not save American jobs, he argued: "That saving American jobs argument is ridiculous." Companies would "transfer production to lower-cost places like Vietnam or Indonesia.

More in Forbes, including observations on the threat of a trade war.

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Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.

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