The U.S. is the source of most of the political heat generated by China’s foreign exchange policy. But how does that policy affect the developing world

China’s economy during the past 30 years has changed from a centrally planned system that was largely closed to international trade to a more market-oriented economy that has a rapidly growing private sector and is a major player in the global economy.

Deterioration in the environment – notably air pollution, soil erosion, and the steady fall of the water table, especially in the north – is another long-term problem.

China is also the second largest trading nation in the world and the largest exporter and second largest importer of goods.
The PRC government’s decision to permit China to be used by multinational corporations as an export platform has made the country a major competitor to other Asian export-led economies, such as South Korea, Singapore, and Malaysia.

The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978.

Its mineral resources are probably among the richest in the world but are only partially developed.

The technological level and quality standards of its industry as a whole are still fairly low, notwithstanding a marked change since 2000, spurred in part by foreign investment.

The market-oriented reforms China has implemented over the past two decades have unleashed individual initiative and entrepreneurship, whilst retaining state domination of the economy.

Globally, foreign investment decreased by almost 40 percent last year amid the financial downturn and is expected to show only marginal growth this year.

“The growth rate (for ODI) in the next few years will be much higher than previous years,” Shen said, without elaborating.

It also aims to sell more than 15 million of the most fuel-efficient vehicles in the world each year by then.

In large part as a result of economic liberalization policies, the GDP quadrupled between 1978 and 1998, and foreign investment soared during the 1990s.

Agriculture is by far the leading occupation, involving over 50% of the population, although extensive rough, high terrain and large arid areas – especially in the west and north – limit cultivation to only about 10% of the land surface.

In terms of cash crops, China ranks first in cotton and tobacco and is an important producer of oilseeds, silk, tea, ramie, jute, hemp, sugarcane, and sugar beets.

Horses, donkeys, and mules are work animals in the north, while oxen and water buffalo are used for plowing chiefly in the south.

Coal is the most abundant mineral (China ranks first in coal production); high-quality, easily mined coal is found throughout the country, but especially in the north and northeast.

China is among the world’s four top producers of antimony, magnesium, tin, tungsten, and zinc, and ranks second (after the United States) in the production of salt, sixth in gold, and eighth in lead ore.

China’s exploitation of its high-sulfur coal resources has resulted in massive pollution.

The east and northeast are well served by railroads and highways, and there are now major rail and road links with the interior.

More:
Does China’s Forex Policy Beggar Its Neighbors?

Before you begin currency trading you will want to educate yourself on what factors and conditions affect currency rates. The biggest factor went trading currency pairs that affects currency rates is information. If you have come from a background of trading stocks or commodities, you know that information you assimilate on a given commodity or stock can affect the price up and down dramatically in a very short period of time. Currency rates are no different. Information is king in currency trading.

The differences currency trading has its own unique information to consider. There are many factors at play in the currency market at any point in time. At its core, you are looking at information that affects two major international economies and their currency. If you add into the equation other economies worldwide, there is a significant amount of information you should consider.

Currency Rates: Fundamentals and Technical Considerations

Fundamentals are generally news and information that reflects the current status of individual countries whose currencies are being traded. These include interest rate levels, monetary policy, international trade flows, international investment flows and economic data reports. There is also political and geopolitical fundamentals to consider. If political events are occurring in a country, that may undermine the confidence of the people of that nation, then the value of its currency will likely be negatively affected. This is why currency traders pay attention to what is happening politically. Political unrest can quickly turn a profitable trade into a loser. Those are factors beyond your control, except that you can control how closely you monitor those kinds of situations.

Technical analysis most of the time involves chart analysis, mathematical studies, trend line analysis, momentum and moving averages. Almost all currency traders follow technical analysis and their trading. Again, if you have a background as a stock trader you will be very familiar with technical analysis and for the most part the same principles apply.

If you aren’t familiar with technical analysis, you should begin to familiarize yourself with a minimum of a basic understanding. Technical analysis and learning how to use it is another weapon in your arsenal to help you evaluate potential trades. Some traders trade on technical analysis alone.

It’s quite possible that currency rates and the prices they bring has nothing to do with either fundamentals or technical factors. In some cases, market psychology, sentiment and the natural instincts of traders dictate currency rates.

Remember this, the Forex market consist of tens of thousands, maybe hundreds of thousands of different trading philosophies and traders. Supply and demand, in this case the supply and demand being buyers and sellers can influence currency rates as much as anything.

Interpreting and assimilating all this information is just one component of a currency traders daily ritual. You should be disciplined and you should be dedicated if you are going to trade currencies. Anything less than 100% dedication is a surefire recipe for disaster an extensive losses of money.

Gather the information, process the information, and then lay that information against your trading plan before you pull the trigger on a trade. If the information you get does not trigger a trade within your trading plan, you should wait for the next one. There is an old adage that says, Mason a trade is just like missing a bus. There will be another a bus and another trade right around the corner.

Trading securities like stocks and commodities have something in common with currency trading. All have trading platforms used to trade those securities. There are a number of Forex trading platforms from which to choose, and most differ greatly and the expense for using these programs varies just as much.

Simply put, a Forex trading platform is trading software that is used by currency traders to help with trading analysis and trade execution. Currency trading platforms will help traders order taking methods, as well as provide charts for analysis and comparison.

There are number of options to consider when choosing a Forex trading platform. Essentially your trading platform choice will provide a bridge of information between you and your broker. It will provide quotes, intraday trading statistics, and charts.

Typically it will include an interface between you and your broker for entering orders. Your software can be installed locally on your computer and most platforms are easily adapted to different computer systems, like Windows, Mac and Linux. You will find that many brokers also offer web-based platforms that can be accessed from locations other than your own personal computer.

Most trading platforms are available at no cost, however, many brokers offer more sophisticated trading platforms that offer a higher degree of functionality for an additional cost. Depending on how active a trader you may be in the currency markets will dictate what level of trading platform best fits your needs.

There are a number of other considerations when you go about the process of choosing a Forex trading platform. Primarily look for a trading platform that is simple, and easy to use. Additionally, determine whether or not the trading platform you like is free. If not, how much is that Forex trading platform going to cost?

• Will you be able to add additional features to your trading platform in the future?
• What technical indicators are available on your trading platform.
• What fundamental information is available on your trading platform?
• Will you be able to make trades from available charts?
• Is the user interface easy to understand?
• Does your trading platform have an application program interface ( API) that will allow you to integrate third-party or proprietary software?

Trading currency markets successfully is about assimilating information, implementing a strategy and seeing it through to its conclusion. The more information that your Forex trading platform provides the more opportunity for success you will have. Your platform should include all relevant fundamental and technical analysis.

Perhaps one of the most important components of a good Forex trading platform is the ability to open a demo account before funding an account.

Investing in any form requires that you manage risk. Currency trading is risky investing at its core. Ultimately, the Forex trading platform you choose should be able to help you manage that risk more successfully.

Very few people are born successful currency traders. The ability to practice your trading strategies, trading skills and practice making sound decisions is paramount to your success. Demo accounts will help you to this end. A good Forex trading platform will also allow you to define your trading style.

Again with the use of a demo account you can begin to discern your individual style when it comes to factors like, your trade timeframe, your currency pair selection, the rationale for making your trade and the risk associated with your trade. If all of these factors sound complicated, that is all the more reason for choosing a trading platform that will allow you a demo account to hone your skills.

Choosing the best Forex trading platform for you should be as important as choosing the currency pair in which you wish to trade. Here we have listed some of the Forex trading platforms for you to consider.

• Etoro

• Easy Forex

• Ava FX