Submitted by Richard Kuslan, Editor, Asia Business Intelligence, Sep 21, 2007 08:42

I've held for many years that China will not allow the Yuan to revalue to any significant extent. It is not in their interest to do so -- briefly stated, the effect of such a revaluation would raise the price of exports, the real engine of the Chinese economy, to ill effect. There may be a scenario in which a revaluation could be in their interest (I have not yet heard of one which persuades me), but curbing inflation, stimulating consumerism, etc., do not rise to the level of significance in the minds of the decision makers who would incur the risk of moving the RMB to any degree. Rich Kuslan, Editor Asia Business Intelligence www.asiabizblog.com

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