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China can not afford to appreciate RMB considerably as it will send tens of millions of workers to the unemployment line. The best outcome for Canada is this: China refuses to raise the RMB, the US govenment place a significant tariff or even sanction on Chinese imports as promised. If this happens, many Chinese companies may have to setup shops in Canada to take advantage of the US/CAN free trade agreement, and they will have to cut the prices for Chinese imports sold in Canada in order to compete since they face higher barrier to enter the US market |
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