In this article the author examines the effects of China's large manufacturing power on the USA and the rest of the world.
The
revaluation of the yuan is highlighted with its potential advantages and disadvantages.The author details how the Chinese
government is trying to hold things together until after the 2008 Beijing Olympics.The article concludes that with its delicate balancing act on government-subsidized production, China is beginning to teeter under the strain of overcapacity and ballooning inventories. Introduction Surging Economy Overheat China Bashing Yuan Revaluation Short-term Effects Long-term Effects Real Reasons Yen and Yuan Achilles Heel Trade Imbalance with US Conclusion