Friday, December 31, 2010
Asian Silences/Internationalization of Renminbi-X
During the fight between the US and China regarding yuan peg issue, many Asian countries are silent. “We used to say when the United States sneezes, Japan would catch a cols. Nowadays, when China sneezes, Japan catches a cold. Japan’s economy has become that much more reliant on Chinese growth,” a senior Japanese official involved with financial diplomacy said. Sanjay Mathur, Asia economist with Royal Bank of Scotland in Singapore, stated, “Policymakers are likely asking themselves, do we really need to upset China the way the U.S. has and get all sorts of retaliatory actions, at a time when China … is becoming a source of demand for Asian exports.” Well, both ASEAN, which started to have FTA with China this year, and Japan depend on the Chinese market to export their goods; the silences is good way to solve the problem.