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However, the technical and political hurdles to implementing China's recommendation are enormous, so even if backed by other nations, the proposal is unlikely to change the dollar's role in the short term. Central banks around the world hold more U.S. dollars and dollar securities than they do assets denominated in any other individual foreign currency. Such reserves can be used to stabilize the value of the central banks' domestic currencies.
Sunday, March 08, 2009
What country is the largest manufacturer?
This often comes as a surprise to people but would you believe that by the best measure available - value added manufacturing output - the United States still accounts for 36% of the global value of manufactured goods. China is closing the gap but still represents just 25% of global value added goods.
How can that be you ask? The US doesn't seem to make anything anymore. Well, it's important to note that many of the products you see or use every day are not made in the US but many high dollar value items are still manufactured here. Consider aircraft, defense systems, pharmaceuticals, heavy capital equipment, and precision scientific equipment.
Originally posted by dolphinfan
reply to post by SLAYER69
I completely agree with you. This is just noise from the Chinese. Their economy is in a tailspin as well and they are just doing a bit of pushing us around. Very typical negotiating strategy coming up to the G20. Take the extreme position going in to get a few things you want.
SAN FRANCISCO—China's semiconductor industry is broken due to recession and underinvestment, with a dip in total chip production contrasted by a 6.8 percent increase in consumption in the country in 2008, according to an analyst.
"China's chip industry, once the wunderkind of the semiconductor industry, is broken, a combination of the recession and too little money being spent by the government," said Robert Castellano, president of The Information Network, in a prepared statement. "Only $7 billion was spent on fabs in the past five years, enough to build only two 300-mm fabs."
Other analysts have speculated that China, which stormed into the foundry market several years ago, had grown weary of the chip business. Last year Bill McClean, president of chip market research firm IC Insights Inc. said China's move into the IC marketplace has been a failure. EE Times reported in December that investment in China's chip industry has been slowing for over a year.