Most of the economists AsiaPundit communicates with expect a slow appreciation of the Chinese currency, to a level of around 7.8 to the dollar by year end. This is one of the few outliers.:
Currency Strategists: CLSA’s Walker Forecasts Chinese Yuan Drop
April 10 (Bloomberg) — China’s yuan may fall 2.3 percent by the year-end because economic growth will slow, said chief economist Jim Walker at CLSA Ltd., the Asian investment banking arm of France’s biggest lender by assets, Credit Agricole SA.
Expansion in the world’s fastest-growing economy may cool to about 7 percent this year, from 9.9 percent last year, Walker said in an interview March 28. Foreign direct investment in China, which exceeded $60 billion in each of the past two years, may reverse as company earnings and investment drop.
Senators Lindsey Graham and Chuck Schumer would not be happy. Which is a shame, South Carolina’s Graham made great friends during his last visit and had even managed to get Chinese vice premier Wu Yi to go stateside for a ‘pimp my state’ visit .
South Carolina has a good business environment and has become one of the hotspots for Chinese investment in the United States, Chinese Vice Premier Wu Yi said here on Sunday.
Economic and trade contacts and cooperation between the southeastern U.S. state and China have produced good results in recent years, with South Carolina’s trade with China reaching 3.26 billion U.S. dollars in 2005, Wu said at a meeting with U.S. Senators Lindsey Graham and Jim DeMint, both from the state.
The vice premier said she was deeply impressed by the hospitality of the South Carolina people and the desire of the state’s businesses to cooperate with China.
South Carolina has become a hotspot for Chinese investment. China’s Hai’er Group established a home appliances production base in South Carolina in 1999, its first in North America, creating job opportunities and contributing to local economic development, she said.
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