Renewed pressure on RMB appreciation will make concessions to China?.

<P> Plagued this year's global financial markets as the risk of flickering, like China's exchange rate policy is also often accused by foreign pressure and, occasionally showing a calm. .</ P> <P> U.S. Treasury Secretary Timothy Geithner on Thursday China's exchange rate policy has been accused of sharp words, China is facing pressure of RMB appreciation again. .</ P> <P> of the long debate on RMB appreciation, the following is some of the questions and answers at this critical time: </ P> <P> why smoke renewed appreciation of the renminbi? .</ P> <P> short, and the United States on the domestic political situation. .</ P> <P> many Members of the United States will face a November election, the U.S. unemployment rate has been persistently high, hovering at close to 10% long-term level, therefore, outside the government to keep the pressure on Obama, urged China to break the yuan against the dollar .two years of almost no change in the situation. .</ P> <P> While many economists believe the yuan revaluation deficit on the U.S. role in the overall reduction is limited, some influential members in Washington, said the yuan was undervalued to give Chinese exporters with subsidies equal to the detriment of the United States competitive with the industry .and to improve the employment situation of the United States. .</ P> <P> Geithner in the United States Senate hearing on Thursday, said: "China's undervalued exchange rate impact has been across the border, causing obstruction to restore balance to the world." </ P> <P> This is .postponed from early April to decide whether the U.S. Treasury to label China a currency manipulator, since the issue of RMB exchange rate Geithner in the most severe terms. .</ P> <P> not put pressure on China if the U.S. Treasury Department, U.S. politics anger or only to rise. .</ P> <P> Democratic Senator Charles Schumer (CharlesSchumer), said lawmakers may soon propose a bill, currency exchange rates for China and other "fundamental misalignment" of the country, its exports to the United States .impose anti-dumping penalties of goods and countervailing duties. .</ P> <P> appropriate time to do RMB appreciation? .</ P> <P> China is considering two main factors that hit last year after the exits of economic recovery, the need for yuan appreciation to curb inflation pressures. .</ P> <P> surface, recent data on the Chinese yuan should appreciate. .May exports rose 48.5%, CPI to reach 3.1% year on year value, the highest 19 months of a new high. .</ P> <P> but economic reality has never been so simple. .</ P> <P> 5 月份 CPI, decreased by 0.1%, inflationary pressures appear to subside. .</ P> <P> the most appreciation of the RMB against the Ministry of Commerce that export growth is caused by exaggerated low base, while the debt crisis in Europe has not been reflected. .</ P> <P> "Generally speaking, from the signing of the order to delivery to final settlement, you need about three months time, and in May the export figures reflect a 2-month or 3 month orders for the contract." China Business .Department of International Trade and Economic Cooperation Research Institute, said Huo Jianguo, "European debt crisis on China's exports to the third quarter to see that." </ P> <P> impact of China's labor costs? .</ P> <P> China's recent outbreak of a rare strikes, leading to the factory, including Honda parts, including a series of plant shutdown, cause people to the world's largest exporter concerned about the situation of wage increases. .</ P> <P> name does not appear even if the appreciation of the renminbi (RMB exchange rate remained stable for example), in theory, higher wages will lead to the global market Chinese products more expensive, resulting in real appreciation of the renminbi. .</ P> <P> the past 10 years, China's labor costs actually increased steadily. .According to UBS estimates, the manufacturing sector wages in 2004 and 2008 at an annual rate of increase of 14.5%, after five years also increased by 13%. .</ P> <P> relatively stable margins and export prices shows that productivity gains largely offset the current caused by the pressure of rising wages. .</ P> <P> However, with some companies, including Foxconn, including talking about the possibility of doubling of wages, this situation may change, at least in the short case. .But in China's manufacturing sector, in fact, labor costs accounted for only 5% -8 production costs%, which means the final price did not need to have increased dramatically. .</ P> <P> It appears that wage increases can not replace the RMB appreciation. .But it does let the Chinese government has carefully managed the exchange rate more than a new reason. .</ P> <P> in the official newspaper published an article Friday, the State Council Development Research Center of the Ministry of Foreign Economic Research Fellow, said Zhang Ji, rising labor costs may squeeze margins exporters. .</ P>.