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China's precious gift to Europe
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This is not true for France – but the answer is obvious: Reduce costs and France too will be able to cope with the strong euro.

In the final analysis, cutting costs is all the Europeans can do if they want to preserve the competitiveness of their exports. The Chinese are not going to change their exchange rate regime, which has strategic as well as economic motivations, just because the Europeans are unhappy with the currency peg.

China has given the Europeans a gift. They should be grateful, rather than foolishly insist that China take it back.

(China Daily February 29, 2008)

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