China focuses on favourable exchange rates: T J Lennon

Published: 19th January 2013 10:07 AM  |   Last Updated: 19th January 2013 10:07 AM   |  A+A-

Unlike Russia, which depends on natural resources for economic growth, the Chinese economic strategy is focused on building favourable currency exchange rates, commented Alexander T J Lennon, Editor-in-Chief, Washington Quarterly, and senior fellow, Center for Strategic and International Studies, Washington.

Speaking at a round table conference on the ‘Real China Challenge’ organised by the center here the other day, Lennon pointed out that China is using its currency for exports rather than consumption.

Subtly articulating the US complaint about the ‘manipulation’ of currency rates, the scholar noted that this shrewd policy puts China in a favourable situation. However, he also noted the challenges that can arise from low investment in the domestic consumer market.

Pointing that the Chinese economic strategy is changing quickly, he hinted at the possible uncertainty of the Chinese economy.

Ruling out a chance for conflict between the  military and the political classes in China, Lennon noted that the military is second to the polity there.

According to him, economic liberalisation in China has not resulted in political liberalisation.

However, he argued that the world is keenly looking at the growing contradictions in China.

Lennon pointed out that the regional contradictions are increasing in China and the elite would be forced to address the concerns of the younger generation who are getting integrated with the global world.

P K Hormis Tharakan, former chief of the Research and Analysis Wing (RAW) presided over the function. Shanna Dietz Surendra, cultural affairs officer of the US Consulate, Chennai, G Gopakumar, former dean of School of Social Sciences, Kerala University, and other dignitaries addressed the gathering.


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