The Chinese policy to keep its currency value artificially low is beginning to urk its neighbors in East Asia as well Latin American countries, not to mention the long-running complaints the European Union and America have been voicing for years. Whereas before the global economic downturn China urged patience with a revaluation of the Yuan, now it is simply mute or, even less constructive, defiant. It’s clear, though, that more than just the American and European economies are beginning to feel the great sucking sound into Chinese factories from international buyers: countries still far down the economic development curve are also feeling the inequity China’s intransigence is creating.

As Arvind Subramanian, an economist at the Peterson Institute in Washington DC, writes in an essay for the Financial Times, “Emerging market and developing countries must do a ‘Google’ on China” and multilaterally work together to present to China it operates in a world of international inter-dependencies and, as such, needs “reminding it of its international responsibilities as a large, systemically important trader.”

Further reading: FT

See also:

National Malfeasance

China: The Misunderstood Energy Giant

Will China be In-grown or Grown-Up?

Chinese Overseas Direct Investment Hits a Wall