Chapter 1707

In fact, it has also been found that it is not a commendatory term to say that China is a big manufacturing country.

If you do high value-added precision manufacturing, then the profit is very high. Such a big manufacturing country like Germany, the United States, island countries and so on will become a developed country.

As for China, the so-called manufacturing power mostly relies on cheap labor to become a world factory, which is an export-oriented economy.

In short, China's foreign trade is aimed at earning foreign exchange through export.

This mode can rapidly improve technology and efficiency, enhance international competitiveness, but at the same time, it also has a great risk, that is, excessive dependence on the international market.

Once the international market changes, it will have a serious impact on this economic development model, or even strike. The cost of such economic development is very high.

As for developed countries, they are all domestic demand-oriented economies. They pursue high consumption, high wages and high investment.

China's foreign exchange earns a lot of foreign exchange, and then? Part of it is used for foreign exchange reserves, and the other part is mainly to buy foreign bonds.

Bonds issued by foreign countries are designed to promote their own consumption. That is to say, when you buy bonds of others, you are equivalent to giving money to others to live a wasteful life.

How much money can bonds earn, that is to say, they can keep your value. But people with your money to stimulate the domestic demand economy, have already made more.

China can not rely on cheap labor as a means of competition, can not damage the environment as a means of development, such development is very imperfect.

Just like China has the largest foreign exchange reserves in the world, it seems to enhance the country's anti risk ability, but there is also a huge disadvantage, that is, it is easy to be kidnapped by foreign exchange, especially the US dollar.

Selling the US dollar will affect the financial market, the stock market in China and the exchange rate of RMB. The result is that you can only buy foreign exchange, but not sell it, which is equivalent to helping the U.S. stabilize the exchange rate of the U.S. dollar.

The strong economy and prosperous financial market of the United States and Britain also have a lot to do with their currency's position in the world. But this position is not unchangeable.

Just like in those days, Soros also attacked the pound exchange rate and made a lot of money. It was also that time that the US dollar took the place of the pound and became the first currency in the foreign exchange market.

In fact, the Chinese upper class also noticed this. Now they are gradually reducing the production of these low value-added products, such as clothes and leather shoes, which are indeed very competitive in the world. But with an anti-dumping ticket issued by the European Union, they have been greatly affected?

At the same time, Huaxia is also doing import substitution, that is to say, developing the related technologies of products that Huaxia has to import, so as to avoid being restricted by foreign countries.

Just like China is the world's largest pen making country, a little guy who produces ball point pen beads has to import from abroad.

Among them, the best technology is island countries, followed by Germany and Switzerland. It seems like a small thing of no value, but after the quantity is formed, it is a lot of profits.

It also directly reflects that there is still a big gap between China and the world in terms of advanced materials.

Is Huaxia short of some scientific research talents? Of course not. Chinese talents are absolutely sufficient.

But many talents are doing other things, such as focusing on military technology and so on. Of course, this is true. The army is not strong in fact and will never become a powerful country.

But the combination of the army and the people is too bad. Many technologies can be directly used for civil use, which can not only improve people's livelihood, but also create profits, so that more funds can support technological development and innovation.

Whether the export-oriented economy is good or not, but the export-oriented economy relies on the economic advantages of the country. If this advantage is technology, it will be perfect, even if it is capital, but if it is only cheap labor, what can you be proud of?

Isn't it right that when the country develops, people don't earn more? Only when people's living conditions are better, that's what people expect.

Huaxia has always said that the development model of other countries can only be used as a reference and can never be copied. This is a truth that everyone knows.

Because different countries have different national conditions, no one can develop according to the pattern of others. Just like the original Thailand, according to the mode of others to develop, and then how big the hidden dangers, and how tragic the results?

Even without Feng Yu's participation, Soros will take the lead, which can also make Thailand and other countries seriously hit, and involve a series of countries closely related to its economy.

China is worried about this, so it increased its foreign exchange reserves, but not too much.

In fact, it is also found that there are serious disadvantages in the excessive foreign exchange reserves. The most correct way at this time is to improve the position of domestic currency in the world.

China has too many U.S. Treasury bonds, which is equivalent to binding its own economy with the U.S., so the devaluation of the U.S. dollar and the stimulation of RMB appreciation will make the U.S. debt in China's hands shrink.For example, if the exchange rate changes from 1:8 to 1:7, then the U.S. owed 800 million yuan to China. Now it only needs to pay 700 million yuan back. This reduces the debt and fiscal deficit of the U.

What can we do if we don't want to lose money? Continue to buy US dollars, raise the exchange rate of US dollars, and let China keep increasing its foreign exchange reserves of US dollars. Then the cost of Chinese exports to foreign countries will rise, and the competitiveness will decline.

The main reason is that China owes too much money to China, and China invests too much in foreign exchange.

This kind of exchange rate change will have a serious impact on China's property. Look at the Japanese yen. The exchange rate is very low. Isn't the economy of the island countries good?

RMB appreciation is already a trend. At this time, we should try our best to avoid losses and make the trend slow and reasonable.

It is fundamental that currencies should be consistent with purchasing power, especially with their own economies.

Of course, many problems may be one-sided. After all, he doesn't know much about the political and political dynamics of the upper class. But China's trade surplus is too strong, and a large number of international hot money flows into China, which is not a good thing.

In particular, many of this trade surplus is derived from export subsidies. Many enterprises depend on this export subsidy to make profits. Can such enterprises develop well?

China's exports are severely restricted by international technical barriers, and there are more and more anti-dumping cases against China, which will bring a lot of losses to China.

If China and other countries want to pay for this economic crisis in the United States, Feng Yu will find a way to make the United States pay for this idea!

…… (to be continued. )