China's export boom based on productivity says economist

China''s version of deflation explains her export boom, rather than an unfairly cheap currency, says independent economist Chi Lo.

Hong Kong based economist Chi Lo argues that while China is benefiting from 'benign' deflation on the back of the productivity growth boosting exports, this may be adding to the 'malign' deflation of some of its neighbours, still suffering from the legacy of previous overcapacity.

Recently, the Japanese have been crying foul with regard to China's currency, arguing that the Yuan is undervalued and thereby providing the country with an unfair export advantage. What's your view

Lo I think that's rubbish. It's partly an attempt to move the focus of attention from the much-needed structural adjustments in Japan's economy, which are facing opposition from entrenched local vested interests.

But...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222