A columnist in the Globe and Mail writes about economist Jim Walker, who is warning against putting too much faith in reports of China’s economic juggernaut:
Instead, say China skeptics like Mr. Walker, these are signs of trouble ahead. China is recording such high growth rates and such huge trade surpluses in part because it has set its currency, the yuan, at an artificially low rate. That makes Chinese goods cheaper for foreigners to buy and contributes to China’s trade surplus. That in turn brings floods of money into China in the form of foreign exchange reserves, a subject I explored in last weekend’s Globe. [Full text]
