Yuan-a Play a Game?

Is China playing an Enron-like game with its trade numbers? That’s one man’s theory.
Writing in BusinessWeek online recently, Stephen Green posited that China, anticipatig a future spike in the value of its currency, the yuan, is resorting to a trick known as “mis-invoicing” in order to inflate the value of the Chinese exports and thus bring funds in to the country. (The Shanghai-based Green is a senior economist at Standard Chartered Bank.)
Green pegs China’s trade surplus at something closer to $35 billion, versus the $102 billion floated by the nation’s government. If correct, it could mean China, while a significant player, is nowhere near the global powerhouse we’ve all been told it is, and the U.S. could very well decide a less delicate approach to dealing with China on matters of trade might be in order.

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About Mike

Mike Buetow is editor-in-chief of Circuits Assembly magazine, the leading publication for electronics manufacturing, and PCD&F, the leading publication for printed circuit design and fabrication. He is also vice president and editorial director of UP Media Group, for which he oversees all editorial and production aspects. He has more than 20 years' experience in the electronics industry, including six years at IPC, an electronics trade association, at which he was a technical projects manager and communications director. He has also held editorial positions at SMT Magazine, community newspapers and in book publishing. He is a graduate of the University of Illinois. Follow Mike on Twitter: @mikebuetow