China's Growing GDP

Here is an interesting article which deals with China's GDP:

http://www.guardian.co.uk/business/2011/jan/21/china-confirmed-worlds-second-largest-economy

There are several links to the kinds of economic influences we would see in Unit 4:

1. President Obama encourages his chinese counterpart, Hu Jintao, to raise the value of the Chinese currency, the Yuan. This exchange rate rise would make currently cheap Chinese exports more expensive for Americans to buy, making American products more competitive in the USA compared to Chinese ones.

2. The rapid growth comes with fears that inflation in China might grow as well, just as we talked about with inflation rising in the boom period of the business cycle.