Does the currency manipulation by China merit “anti dumping” levies on their exports?
China can easily afford to lend money to US to fund their exports to the US as the profit margins are high because of low labor costs. This arrangement can continue till industry in US and Europe collapses under the Chinese export onslaught. The recession is lowering the cost of material inputs for China and therefore the competitive advantage of lower labor is getting further accentuated in China’s favor. If and when the recession ends, the world will discover that China’s market share has zoomed up even though the volumes may have fallen.
