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DOMINO EFFECT : CHINA FACING HIGHLY INFLATION BEGINNING OF THIS YEAR

After re read the article and document, there are few mistake i wrote before. Here I Summary other from much more reliable source.

Foreign investment

In the early of the year 2008, foreign investment flow into Chinese almost grow to 75 % including export. This making its foreign exchange up to USD 1,6 zillion and become the strongest in the world. Chinese government increasing interest rate up to 11,4 % and have already mark up 6 times since year 2007 and become the highest one at the last 13 years. Meanwhile Yuan exchange rate have already been appreciated to USD for the last 4 months.

Corruption

According to survey by Political and Economic Risk Consultancy Ltd(PERC) in Hong Kong, China is the most corrupted country among the southeast asia nations. Other are Vietnam and India/ Corruption is another fee which increasing business cost. Mistaken calculation by government causing 10 % countries income to loss each year.

Food price fastly increasing

One’s man who lived in China told me that raising food price is in irassional. For comparasion: pork meat at the year 2006 in traditional market only 8-10 kuai(equal to Yuan) each jin. 1 jin is about ½ kilograms of weight. Now, he said for the same weight, he need to spent about 15 kuai. Egg at early year 2007 is still 6,5 kuai for 1 jin increase to 8,5 kuai for 20 eggs only not half kilograms anymore. People’s ussuall name it as kuai not Yuan. According to statictic data, food price early this year had increased to 23,3 % from last year.

China until March 2008, inflation has been increased to number 8,7 % from January about 7,1 %. This happening after snow storm hit Chinese and Chinese Lunar New Year on February.

According to FAO,  the food price jump up because of changing consuming patern behavior to Chinese urban society. In year 1985, Chinese people consumed 20 kg per each people per year. In year 2000 increased to 50 kg per each people per year. And predicted in year 2030, the number will increase to 85 kg per each people per year.

Government requested to increasing wages

Chinese government since year 2006, had already demanded 18% increase of labour wages/salary for them who worked in Beijing, Shanghai, Shenzhen, Guangzhou, and Nanjing. Since November 2006,Chinese Government delayed to increasing food price(controlled by countries) like oil, water and electricity. They also warned businessman/woman not to juggle with the price.

master_2010:
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