Today’s Global Highlight
Some Chinese Companies Are Ready To Relocate If The Renminbi Appreciates Sharply
The US Treasury Secretary said on 23 April that it is in China’s own interest to shift to a more flexible currency to help bolster domestic demand, while India and Brazil said that a stronger renminbi is needed to rebalance the global economy. As the US, India and Brazil raised pressure on China to let its currency to appreciate, some Chinese business leaders said that they are ready to relocate where costs are lower. Indeed, Haier Group, the biggest Chinese appliance maker, has already built plants in India and Thailand, while US shoemaker New Balance shifted orders to Indonesia. Lovely Creations Corp., the supplier of talking teddy bears to Wal-Mart Stores Inc., may move some of its 800 Chinese assembly jobs to Vietnam because the currency is eroding profits.
The World Economy - 6/5/2010
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