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2 021203 htm Newsweek Deflation China
  1. Low labor costs and an undervalued currency suck investment and jobs from elsewhere. Legions of multinational firms are relocating in China, whose exports threaten global deflation.
  2. “Dell wants its laptops sourced in China because costs are lower,”
  3. Foreign exchange reserves now total $453 billion for Japan (up $58 billion since last December), $257 billion for China (up $42 billion) and $117 billion for South Korea (up $14 billion).
  4. Urban unemployment is “unprecedentedly high” at 11 percent to 13 percent, says Lardy. There may be 200 million people “underemployed” in rural areas

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