"Re: Open markets will relieve political tensions- posted 28 Sept.

"It seems no surprise that the US (and other nations') trade deficits with China did not decline much as the yuan rose 20% in value. With no other change in unit volume of trade, the 20% rise in the yuan vs. the US$ results in a 20% increased deficit. A combination of decreased imports to the US and increased exports to China of 20% unit volume is necessary just to break even in trade deficit levels, let alone reduce it. The competition between the Chinese command economy run by a centralized government versus individual western corporations hungry to compete with each other sourcing Chinese made goods is no match. Entire industries in the west are disappearing under Chinese competition. At some tipping point, when they "own" key industries, the centralized Chinese "corporation" will let their yuan float to exercise their economic power and buy (more cheaply) only the goods, food, and resources they need.

"Thanks to you and Eoin as always for thought provoking postings and advice."

David Fuller's view Many thanks for your kind words and an important point well stated.

As the standard of living rises in China it will certainly have more power but will also face more competition, not least from other Asian economies.