RMB appreciation or not, this is a problem. According to natural rules in economics and the interest of the US, I agree that RMB appreciation should be necessary. The government cannot always disobey the basic rules, no matter how powerful it is. Foreign investors may be excited on talking RMB appreciation; however, for ordinary Chinese people it might not be a good news.
I do not care for the affection of RMB appreciation on Chinese export trading, instead, let us take a look at the changes in ordinary Chinese life. In Wuhan, the biggest city in central China, with the population of over 850 million, food price has increased 25% in average since this August when China government began to speed up the appreciation of RMB; the price for egg even become 2 times that of in July. However, the average income increase only 0 - 3%; more than half employee cannot get a compensation in salary as the increasing of laid-off workers. Also, the prices of electricity, water and gas keep on rising national wide including in Wuhan this year. In spite of the government regulation on real market, the average price of apartments in all Chinese cities except Shanghai continue rising up. That is the life the ordinary Chinese should be faced in front of RMB appreciation.
I still admit that RMB appreciation is correct; the problem lies in the government financial policies. RMB cannot be exchanged freely for ordinary Chinese and the government insists on GDP increasing depending on export rather than domestic consumption. Now who should take the responsibility ? Again the whole Chinese people?
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