At the beginning of a 10-day trade meeting between China and the US, Chinese President Hu Jintao said his country would continue to reform its exchange rate method “under the principle of independent decision-making, controllability and gradual progress.”
This reform, if it goes ahead, would have great implications for international trade, including creating a level playing ground for industrialised countries that want to export to different markets but have been prevented by the effects of China’s devalued currency.
It is a welcome development that the Chinese government is willing to review its trade policies. However, such reforms should not be restricted to its trade activities with the US, but across all of its trading partners, especially developing nations with weaker spending power.
While we welcome every opportunity to help people emerge in our societies, perhaps we must also look at the negative impact that the dumping of cheap Chinese goods may be having on weaker economies, and the lives of their people.
The safety of Chinese products is only one aspect of concern. Not long ago the world witnessed the scandal of milk contaminated with melamine that was being sold in different parts of the globe.
Such events are worrying developments that the Chinese authorities must immediately address, while it ponders on how best to achieve sustainable and balanced trade terms with the international community.
news@metroeireann.com
