Sure the comparative advantage that CHN has is "manipulated" at the top to make price cheaper at the expense of their own workers "cheap labour". The Chinese government makes it much more cheaper by purposely keeping the yuan exchange rate lower to entice the world.
Sure the world will take advantage of cheap goods and services provided by CHN just like you did and will continue to do so that even developing countries like Indonesia and others poorer were being kept out of the "unfair" competition. That was how CHN got rich so quickly, but the wealth is limited to those connected with the party and government in the main while the majority of its people are still suffering in poverty. Corruption, nepotism, etc, have not been eradicted although the party tried superficially with a few scapegoats to show they are "serious".
Now that the change in party leadership is around the corner, a false picture of calm and stability is maintained to ensure the continuation of the status quo and power weilding - and thereafter the circus will repeat itself. So inequality will persist much to the delight of the superior genes and IQs of the Chinese party leadership.
Loh, actually there were some US congressmen and women who at one time welcomed China's so called cheap goods from so called currency manipulations as good for America. Have you noticed that the US Federal Reserve chairman have repeatedly defended China's "cheap" goods as good for the US. Alan Greenspan never wavered in praising China's contribution to raising the living standard of Americans, even when blasted left and right bu lawmakers.
Loh, are you "influenced" by the US congress?
Let me explain a little bit about economics and international trade. Countries like China imports raw materials to make goods to sell in the domestic market and also export them. Therefore countries that export raw materials, like Australia, ASEAN barring Singapore, Africa, Brazil, ME do have a trade surplus with China. Such imports are paid by China, yes you guess it right in US dollars. If the imported raw materials cost say US$95, the added value of local processing in China say is US$5, it then sells it at US$105, making a profit of a mere US$5. Now if China were to be as stupid as you suggest and manipulate its currency, pray how do they juggle with their real US dollar raw material cost of US$95? How is it possible for CHina to sell it "manipulated" level of say US$90?
Loh, sometimes, we have to have to be able to think critically instead of being thoroughly soaked by what we read in the media. As you may know all media is a weapon to be used or abused.
Let us now take another unlikely case of say China exporting goods that have no element of any imported raw materials. A good case here is badminton shuttlecocks. Now, Loh, please tell me are you complaining about the low (or is it high now) prices of say Aeroplane or other Chinese shuttlecocks?
If you truly believe that Chinese shuttlecocks are priced too low through currency manipulation, then how about paying the difference between the price you paid and "your own true price" to BC fund for needy badminton players.
We are now in a time of great change with China the catalyst. Those who do not adapt will be left behind and they will continue to bitch and curse. This is human nature and perhaps my own experience can be of some help.
I have been in HK for 35 years and have seen Shenzhen from a small fishing village to a huge metropolis that is now bigger than HK. At that time HK people looked down on mainland Chinese as no better than scum and laughed at them for casting envious "red-eyes" at HK people. For those uninitiated people, red-eyes means intense jealousy. Now the tables are turned with HK people having huge "red-eyes" towards mainlanders. The same thing is beginning to happen in Taiwan, which now is in a sorry state with so many stores/shops shuttered now due to the previous president's disastrous "independence at all cost" campaign.
If I may add, this red-eyes disease is also beginning to spread to Singapore. HK and Singapore are getting old with no comparable replacements in the foreseeable future, except for immigrations from China. Singapore may not say it publicly, it depends on both Chinese immigrants from both Malaysia and China. The same applies to HK. But here is one huge difference.
Malaysians and Chinese will always have two roots, not one, in Singapore. This is human nature, with more options always the winner. The government may put the screws on to force such immigrants to become citizens but this will be counterproductive in the long term.
HK is different as it is one country with China. The one country two systems is only a temporary bridge. It is now 15 years since the handover and in 35 years' time it will be one country with HK a city in China. %0 years is time enough. In syn with this period of 50 years HK is allowed to bring in poor young mainlanders with children at the rate of about 55,000 people each year. In the past 15 years this young and poor immigrants from China make up more than 11% or more than 800,000 to date. This of course creates a cultural and social divide but longer term it is the immigrants' off springs that will replace the aging population. In addition there are many rich mainlanders who are HK permanent residents or citizens. However, like in Singapore they don't live here and instead use HK as a base for their global businesses.
On another note, the divide between the rich and the poor in China is actually about the same as Singapore, although the press seems to be selective in reporting this.
According to the world bank Singapore's latest Gini Coefficient od 0.48 is higher than China's 0.47.
Now if you were to take away Singapore's sovereign fund share the Gini Coefficient for Singapore might even be closer to 0.60, perhaps a world record.