In order to stimulate its economy, Beijing re-pegged its currency to the dollar. Doing so, however, has not only increased global economic imbalances — it could ultimately harm China itself.
It was just over a year ago that Huang Fajing, 55, was struggling to keep his company afloat. The president of lighter manufacturer Wenzhou Rifeng Lighters Co., Huang was forced to send his roughly 500 workers home early as a result of the global economic crisis. He himself had little to do but watch television in his luxury apartment in the eastern Chinese industrial city of Wenzhou.
Full story: China’s Aggressive Exports: Beijing Economic Policy Rocks the Global Boat – SPIEGEL ONLINE – News – International.