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China has also offered to contribute nearly one-third of the $120 billion economic stimulus package being worked out by ASEAN with the stated purpose of helping member-nations reduce their dependence on the International Monetary Fund. Japan offered to cough up a similar amount so that its influence in the region is not diminished.
A senior Chinese official has said that the China-ASEAN Free Trade Area agreement, which will come into being on January 1 of 2010, will result in wide scale use of the renminbi or Yuan as the regional currency.
China is set to use the ASEAN meet to sell the idea of making the Yuan an international currency.
Originally posted by ANNED
Never going to happen and if it did China would have to allow the Yuan seek its own level. and that means china would have to floot the Yuan and let it incress under trading.
No more would China be able to set the value of the Yuan.
This would lead to high inflation and higher wages. and a loss of jobs and trading power.
Shortly the cost of manufacturing in China would raise till it was no longer
BEIJING: Indian exporters are faced with a new challenge as the free trade agreement between China and members of the Association of Southeast Asian Nations became operational on Friday. It will mean nearly zero duty trade between several Asian nations making it difficult for Indian businesses to sell a range of products.
India has been planning to enlarge its trade basket to include several commodities that are now supplied to China by ASEAN countries. These products include fruits, vegetables and grains. Indian products, which will face 10-12 per cent import duty, may find it extremely difficult to survive the competition from ASEAN nations.
China is cutting tariffs on imports from ASEAN nations from an average of 9.8 percent to about 0.1 percent. The original members of ASEAN -- Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand –- have also agreed to dramatically cut import duty on Chinese products from an average of 12.8 per cent to just 0.6 per cent.
The newly created free trade area involves 11 countries will a total population of 1.9 billion and having a combined gross domestic product of $6 trillion.