The common debate is whether the Chinese Yuan (also common known as the Renminbi) needs to be reevaluated, especially against the US Dollar. Since the early part of this decade, US Government has been lobbying for the Chinese Yuan to be appreciated so that there is fairer competition between US and Chinese products both internationally and domestically.
Chinese Products are simply too cheap due to the low value of the Yuan (as of today, 1 US Dollar is trading at 6.83 Chinese Yuan).
The irony is the increasing number of Chinese tourists willing to spend on overseas travel, despite the unfavourable exchange rates. To put it in simple terms, the economic boom in China is generating so much wealth that Chinese are getting richer exponentially. While there are a large number of Chinese students still studying and working overseas, Chinese nationals now have the belief that you can have a future in China… and a RICH future too, if you have the ability to China’s silk road economic belt.
Therefore, while the Chinese Yuan is trading low against Euros, US Dollars and other major currencies, it still bode well for the communist country, which is becoming more and more capitalist by the day.
The economy market forces of supply and demand still works. Chinese Products still appeals due to the low price. Most of the things around us are made in China. Nike Shoes, play toys, milk powders and there is even talk of building a commercial aircraft in China! Now, if only they have more QCs in their products.