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"In other words, Shenzhen's factories will become much less competitive."
this quote sounds ominous. I suspect Shenzhen's factories will be cranking stuff out even if the yuan get stronger. Costs of production will be absorbed by middle men and end users as that's where the most mark up is. What's the cost of production compared to all the mark up(s) as product gets passed down the line to the final supplier prior to sale. If labor costs go up in China I see a win win situation. You got to make bucks (yaun) to spend bucks. If the little guy in China starts spending uppie for the world economy.
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