equityresearch
Equity Research
China, under international pressure to reduce its trade surplus, may choose to shrink it through raising workers’ wages rather than letting the yuan appreciate. Higher labor costs would cut Chinese export competitiveness while boosting domestic spending power and sustaining economic growth, according to the bank. Premier Wen Jiabao’s government has been pressed by U.S. and European officials to end a 19- month yuan peg to the dollar to help diminish trade and investment imbalances that contributed to the credit crisis. The strategy may limit gains in the yuan to 3 percent this year.
http://www.nirmalbang.com/Upload/Daily100210.pdf
http://www.nirmalbang.com/Upload/Daily100210.pdf