The world's leading industrialised nations find it increasingly difficult to compete with China

The world's leading industrialised nations find it increasingly difficult to compete with China. Its favourable exchange rate has made it the new export champion. Meanwhile political pressure is growing for Beijing to increase the value of the Yuan. A policy change could be possible later this month when Chinese president Hu Jintao is expected to attend the upcoming round of the Strategic and Economic Dialogue in Washington. But a stronger Yuan is not necessarily in China's interest.