Valentino Kostner A.A. 2009/2010 1

Currency dispute heats up in China

Valentino Kostner A.A. 2009/2010 2

Who are the main Characters?

Valentino Kostner A.A. 2009/2010 3

WHY?

Valentino Kostner A.A. 2009/2010 4

Renminbi features

At the moment very low exchange rate;

Exports are convenient

Huge amounts of money entered

Great possibility to make investments

Valentino Kostner A.A. 2009/2010 5

Problems

Inflation

Raise in American public debt towards China

International economic crisis

Valentino Kostner A.A. 2009/2010 6

Future actions

Chinese government should start appreciating the renminbi in order to fight inflation and to reach the real value of this currency.

Improve business relationships with USA for mutual favors in the next future .