hello,

Unfortunately the chinese government holds the yuan to dollar exchange
rate at a artificially low rate to keep the price of chinese good low,
and the price of american good high. Unless this exchange rate is
allowed to "float", the cash will continue to move to china. The
exchange rate was a big part of Bush's recent trip to china.
and when they do that, what do you think will happen? the RMB will go up?
this is only partially true, the RMB will go up compared with the $, but
it's because the $ will be going down compared with the rest of the world
curency. this means expensive gaz and imported goods.
China is protecting the $ by keeping their $ stock unused (at great cost for
them at the moment) but it will not last forever, and once they stop, it's
going to be a bad news.


And don't think that the average chinese worker is the big beneficiary,
the government controls the economy and reaps the biggest rewards. How
else could the chinese government afford to buy Conoco oil.

on a per product basis, it's the manufacturing business owner (often from
taiwan) that make the most money.

The government redistributes a lot of that welth in other places (such as
public project and construction) and to stabilize the economy (buying US
bonds among other things).

regards, cyrille