RMB appreciation would worsen job situation
( 2003-07-28 14:41) (Agencies)
The appreciation of the Chinese currency RMB would
wipe out millions of jobs in China, and worsen the country's already－grim
employment situation, leading labor experts and economists warned. The warning
came as the government, in its latest effort, made clear its determination not
to allow its currency to appreciate, at least in the short run.
A large employment
exhibition attracts thousands of people hunting for a
job. | Experts say, an expected drop in exports and
foreign direct investment will cost jobs if the government caves in to growing
international pressure to raise the value of the RMB.
Despite an overseas chorus led by Japan to press Beijing to revalue the RMB,
both Chinese officials and economic researchers said that maintaining the
stability of the currency is conducive to the national economy as well as a
global economic recovery. A revaluation of the RMB may plunge the Chinese
economy into a long－term recession.
Cheap labor costs have been considered as the biggest contribution to the
county's surging exports. A RMB revaluation, however, will definitely undermine
the advantage of competitively－priced Chinese exports, most of which are from
labor－intensive manufacturing industries.
The prospect of huge job cuts to be caused by a RMB revaluation is something
China cannot afford.
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