China takes centre stage

This article discusses the bold moves China has taken in the wake of this economic crisis. Their public statements about the reliability of the dollar have raised questions about our economic plans. Despite these claims, China has much to lose by weakening the dollar. Any move towards an international currency would seriously devalue the billions of dollars worth of U.S. bonds they currently hold. Secondly, China exports 20% of its goods to the United States. Any devaluation would make their goods more expensive, and would amplify the effect the global economic crisis is already having on the Chinese economy.