Good or Bad

China had months of faster economic activity. Nowadays it seemed like finally it is growing a little slow. Meanwhile, the central bank is putting 10 billions of renminby into the economy each week to keep the Chinese currency weaker against dollar. That’s why they are confused, whether the slowing is enough to bring down the inflation. “China’s Economy slows slightly, but inflation remains a worry" on the New York Times. (Wang, 2011)
Hilda Wang reports that China policy makers have difficult situation to measure how much currency appreciation the export industry can resist. Western and economists’ say printing renminbi and buying dollars would be the easy way for China could do in order to lower the inflation. But they are afraid that it cause dismissal of workers in the export industry. The government started to put in domestic measures such as racing interest rates and forcing commercial banks to fix their assets instead of lending themselves. According with Wang , any control on the domestic economy has a result opposite the government’s long term goal of export industry. Experts in the economic market think that the economy still is strong, but the increase in interest rates has affected particularly smaller business as clothing sector, because they exports with low profit margin. The Chinese economy grew up almost 26% more from the year earlier in contrast to global industrial production that grew 13.4%. In addition China’s trade profit in April at 11.43 billion was almost three times more than the economist had expected.
I think that China’s economy, could seem like the best, because they have a huge profit and also they made their market export worldwide. However, what is good for the export sector, is not good for the market domestic, so if China has too much exceeding in dollar in the market as a result inflation to the country. They balance of trade could reflects a superavit, which it is ironically affects the local economy. China has a big challenge for any slight decision that they take to curb the export, could affect the local economy. For instance they can cause layoffs in the export factories. In my opinion they need to take a hard measures as much in the local sector as the export sector and they must stop buying dollars and compete on the basis of the international rights in the wage and hiring of employees in both sectors and also they must invest in increase the quality of life of all Chinese people. In short China must invest to develop the quality of life of their country. It would help to give competitive prices and to decrease the inflation originated by the growth of the exports and the protection that China make of their currency.

References
Wang, H. (2011, May 12) China’s Economy slows slightly, but inflation remains a worry. The New York Times. Retrieved May 12, 2011 from http://www.nytimes.com/2011/05/12/business/global/12yuan.html?scp=1&sq=China%E2%80%99s%20Economy%20slows%20slightly,%20%20but%20inflation%20remains%20a%20worry&st=cse