China’s Rich Throw Lifeline To West
From Asia Times Online:
As world leaders at recent gatherings such as the Group of 20 countries and the International Monetary Fund pledge to rebalance world trade, with the implication of a stronger Chinese currency, Western manufacturers of luxury products, such as BMW cars and Swiss watches, are already seeing sales surge in China.
A stronger yuan would increase the purchasing power of the Chinese currency for the country’s citizens, leading to increased imports into China. That would benefit countries such as the United States, boosting jobs there while helping to rein in large trade deficits.
Sales in China by Munich, Germany-based BMW, the world’s biggest luxury automaker, surged 63.2% in August from a year earlier to a record monthly high of 9,013 vehicles. That helped to compensate for a 10% plunge in overall auto sales in the same month to 101,679.