Export Data News
- Produstivity driving China's exports'
Date: 10-Sep-2007 Sources: (Shenzhen Daily)
CHINA'S 'astonishing?productivity growth, and not its low wages and currency policies, is the main factor behind its booming exports, a U.S. researcher told a government panel Friday.
'China's economic success is not based on relative wage competition or on an undervalued exchange rate,'Pieter Bottelier, a professor of China studies at John Hopkins University's School of Advanced International Studies, told the U.S. International Trade Commission.
'Fast productivity growth is a more important factor explaining China's international competitiveness than the exchange rate which, by most standards, did not become undervalued until 2003 and 2004,'Bottelier said.
China's exchange rate policies continue to be a source of trade friction with the United States. Many U.S. manufacturers and politicians think China's yuan is undervalued, giving Chinese companies an unfair advantage in trade.
Two U.S. Senate committees have passed legislation giving the U.S. Government new tools to pressure China on the issue, despite the Bush administration's warning the bills could backfire on the United States by triggering a wave of protectionist moves around the world.
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