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China-s economy works against the western world and specifically the United States.

First, China does not allow their currency to be market set which means that China can set the price of the Yuan at almost whatever level they want it to be. The problem with this arrangement is China usually has it set at an artificially low rate. This means that Chinese goods and services can be bought for a lot less than U.S. or UK goods. at 6.60 to the dollar, chinese goods will be cheaper than if the dollar was worth 8.50. So the Chinese sell more goods at a cheaper price. They make less money than if they set the yuan at 8.50.

The bottom line is that China-s economy has now reached the size that its undervalued exchange rate and export-led manufacturing development policy are serious problems for the current open, multilateral, international trading system which allows its currency to be set in the open market.

As China produces more goods which they can sell at cheaper prices the U.S. market is threatened with detsabilization and price wars at home. This may happen in other world economic regions as well. China is not under control.