April 5th, 2010
12:42 PM GMT
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Hong Kong, China - While politicians and business leaders in the United States lobby for a stronger Chinese currency, many of the people who work in the manufacturing belt of southern China quietly hope their government will keep the yuan more or less where it is.

The Chinese government has been controlling the rate of its currency, the yuan, for years, mainly because officials believe a stable currency is key to supporting their exporters. However, now that China is the world's biggest exporter, more critics of Beijing's tactics are emerging in Washington. They argue Beijing is setting the yuan too low, keeping it artificially cheap, a policy that hampers American businesses and contributes to the U.S.'s trade deficit with China.

Yet at this shirt factory in Dongguan, the people are grateful for that stability. China's predictable currency rate has helped tens of thousands of factories to thrive here. The boss at this factory though acknowledges momentum is building for Beijing to loosen its reins on the yuan. He's preparing for the possible changes. His biggest question - how much more are American consumers willing to spend on clothes from China if the yuan appreciates? Because if the currency appreciates, he says he would need to pass on some of the costs.

Eunice Yoon looks at China's currency control

How much more would you be willing to spend?



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