By CHRISTOPHER S. RUGABER
AP Economics Writer
WASHINGTON – China’s decision to let its currency rise in value adds buying power to its exploding middle class – a win for American electronics makers, which can sell more computers and iPods to a hungry market.
At the same time, it puts a squeeze on U.S. retailers like Walmart because Chinese imports suddenly cost more. And prices may not fall as fast for high-tech products made in China, like cell phones.
What sounds like an obscure economic decision – China’s move to loosen its currency, the yuan, from the U.S. dollar and let the open market have more of a say in its value – has real-world consequences around the world.