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Ooh, ooh! A good knowledgeable question from the MOrons!



Here's my take. I believe that the Chinese will take slow steps towards floating the yuan, minimizing the effects. There will not be a complete release of the currency until they have achieved an equalization of the currency's value. By that time, some of their economic advantage may be eroded, but the end result will be a competitive economy.



The Chinese leadership are known for conservative, careful economic steps, not shocking moves.



 

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Chinese bikes suck. I changed my oil every 1000 miles, check my oil level daily, and change my spark plug every 2500 miles. Guess what? My engine still bonked after only 3100 miles!
 

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Maybe that is why they are moving production to Thailand? That way they are protected from currency movements in the yuan. Big reason many companies go global is to help with currency hedging, moving production around as currencies shift.
 

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Problem in the US is demand driven, not supply driven. I was talking with the owner of Cascade Moto (Triumph / Guzzi dealer in Portland, OR) last summer, and he mentioned his frustration with new riders. He had a standing offer to all new riders that he would sell them a small bike (125?), and a year later he would buy it back at the same price if they were moving up. Nobody would take it. Not manly enough for them.



All the major Japanese makers had tried bringing small displacement bikes to the US, but they never sell well enough, long enough, to be worth the hassle. The problem is that the people who need the experience most are the least likely to get it.
 

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China is the biggest threat to the U.S. as a superpower nation. Remember that Japan started out selling chinsy crap to America. You couldn't find anything that didn't say "Made in Japan" somewhere on it. And now they have a huge economy in spite of their lack of resources. Imagine the same thing with China, only they have tremendous natural and human resources.



Please, please, please do NOT buy Chinese bikes if you consider yourself an American!
 

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Look around your american house, almost everything is made in china. Or made from parts made in china. Though I did find it funny the other day when I unboxed a Toto Toilet (Japans #1 brand) The bowl was made in the USA but the tank and internals were made in China. No Japanese parts to be found, proving your lack of resources comment. Though buying American is still buying Chinese as we outsource everything elsewhere.
 

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Oh GOD NO! Why would we want the "Red Menace" to become even more Capitalistic and Democratic? I'd much rather they remain a Communist totalitarian state bent on wanting to kill us (rather than have us as customers....)



Look, I think it's good for competition (the Japanese ultimately made Detroit and Europe make better cars didn't they?)



Like it or not, it's truly a global economy now. Once China saw what Hong Kong could do for their cash coffers, it was really only a matter of time.



If the US still wants to compete, let them build the best possible products that may cost more, but are honestly worth the price. People get cheesed off enough with shoddy goods, they eventually learn that lesson anyway (buy quality -- and you usually just buy it just once.)



The best companies with truly "premium" -- not just "premium priced" -- products will always survive in ANY market (and be eagerly sought after by savvy consumers.)



Maybe H-D will someday wake up and take that approach to product developme.... Oh, never mind... you're probably right.
 

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The Toad
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Billhawley understands that economic power leads to political power. The Chicom leadership will learn this lesson.
 

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Or a .50 BMG.
 
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