International Economic News Review, Essay Example

Article Source: Chinese Way of Doing Business: In Cash We Trust by David Barboza.

Yuan, the Chinese monetary denomination, is reported to be among the most printed denominations around the globe. Apparently, because of the government’s refusal to print money over the amount of a 100 bill, the need to produce more printed money for the people to use becomes necessary. This particular ‘odd’ rule about monetary management in China handled by the government’s administration spurs out from the desire of controlling money laundering and corruption in the government.

While the above reason is considered valid and practical for the government, some economists consider the said condition of monetary management in the country a particular sign of a huge economic imbalance among its people. The poor remain poor, and because o f this, even though the nation has taken a huge leap forward towards advancement and general industrial progress, the need to keep the monetary process simple for the majority of its people remains necessary.

This is the reason why even when it comes to dealing in huge amounts of monetary exchange, the Chinese business system opens its doors to accepting cash transactions more openly than that of cashless operations through the use of ATM cards or credit cards as well as paper-based notes. This makes it hard for huge companies to enter huge amounts of money to the country from local areas abroad since the laundering systems are tight. As a result, business organizations aiming to open their branches in the area have to think matters thoroughly especially in relation to dealing with monetary management. True, the gap between China’s rich and poor communities directly hit their economic status hardly that everyone has to adjust to such dormancy of monetary procedures in the country.

Work Cited:

Barboza, D. (2013). Chinese Way of Doing Business: In Cash We Trust. http://www.nytimes.com/2013/05/01/business/global/chinese-way-of-doing-business-in-cash-we-trust.html?ref=yuan. (Retrieved on July 28, 2013).