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The author of this article has a very outdated understanding of China. China is far more complex than how he thinks it is. In the June 2005 (Vol 15, No 06)of China Economic Review, there is a great article titled "Taking measure of the Yuan". It is on page 20. I urge anyone interested in the full issues related to China to read this article.

Here is what they are saying in Bangladesh (again, this is for comment and discussion):

While China's regime is clearly authoritarian, so is Saudi Arabia's The latter is governed by a repressive feudal monarchy with an appalling human rights record. It is linked to the export of terrorism. It is linked to the export of terrorism. It is so far from being a free market economy that it has still not qualified to join the World Trade Organisation (WTO). Yet Washington not only tolerates Saudi leaders, it cossets them.

The US needs to keep the Saudi regime sweet because of its oil. But to assume, as American China-bashers implicitly do, that the US does not need China and can bend it to its own will is self-delusion. The two countries are deeply interdependent. China's need for US exports and inward investment is mirrored by is importance as a prime source of funding for the US budget and current account deficits. To rage about China's designs on a medium-sized energy company, while relying on it to pay for the upkeep of federal government -- including its defence programmes -- verges on the surreal.

http://www.bangladesh-web.com/news/view.php?hidDate=2005-07-07&hidType=EDT&hidRecord=0000000000000000051340

What say you?

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But some economists worry that China may have unleashed economic forces that will eventually worsen inflation in the United States by making imports not just from China but all of Asia more expensive for Americans.

The biggest initial impact on consumers may come in toy prices, since about 75 percent of toys sold in the United States come from China.

There also is concern that interest rates will be rising, too, as the Chinese curb the massive purchases of U.S. Treasury bonds they have been making as part of their campaign to keep the yuan fixed in value against the dollar.

Still, most analysts argued that the overall impact on the U.S. and world economies will be extremely positive by trimming America's huge deficits, which pose a threat to global financial stability.

http://www.nctimes.com/articles/2005/07/23/business/news/19_14_387_21_05.txt