Power of the Powerless

Author: Zhong Wei
Publisher:
Publish Date: 2005-01-01
Features: The long-term destiny of the RMB exchange rate is that as long as China's political and economic system reforms do not stagnate or reverse, appreciation will be its only advanced direction. When we lament the various negative consequences of RMB appreciation and bask in the benefits of the current institutional arrangements, can we also consider the dangers of the "appreciation phobia" from the other side of the coin? The root causes of the difficulties faced by state-owned banks lie outside rather than within the process of listing. Leaders must pool their efforts to address the intricate problems outside the market. Unfortunately, many "market-extraneous" issues are actually problems within the bank management system. As the saying goes, "To conquer the world, one must act without conflict. Once conflict arises, it is no longer possible to conquer the world." If globalization faces a showdown between China and the US, the 21st century might become a tragic one. If globalization welcomes sincere engagement between China and the US, the 21st century could be an era of shared prosperity for the billions of people around the world. In the past few years, the lower strata of society were able to struggle to survive precisely because essentials like food, oil, and salt were affordable. Now that prices have risen, for those who meticulously calculate their daily expenses down to the cost of a few or a few cents per toothpaste, it is a great misfortune. As the saying goes, "The people rely on food for survival." If the lower strata have nothing to eat, then there is no "heaven."