James Kynge

I'm not saying that's going to happen this time.

I don't think that history will repeat itself, but it could rhyme.

We could get a situation in which Chinese assets become more popular, more attractive to investors around the world.

So the last thing I'd mention, which is a slightly humorous thing, is the so-called Big Mac Index.

This is The Economist magazine's kind of back-of-the-envelope calculation on whether or not a currency is overvalued or undervalued.

And it basically compares the price of a Big Mac sold at McDonald's in the US, let's say, compared to, in this case, China.

And currently, a Big Mac in McDonald's in the US costs $6.01, whereas in China, it costs the equivalent of $3.6 US dollars.

So you can see that even according to the Big Mac index of The Economist, the renminbi is severely undervalued.

So, you know, let's see how this goes.

But there really is no more important price in the whole economy than the price of its currency relative to other currencies.

So if the renminbi does start to appreciate, a lot of things will change.

Well, finally, we disagree on something, Alice.

You're not buying this story of renminbi appreciation as much as me, I think.

But that's interesting.

I mean, let's see how it goes.

I fully get your point.

This is the dog.

that didn't bark on so many occasions, on so many occasions in the last 20, 30 years.

I can remember when everybody outside China was getting really excited about the renminbi appreciation, and often it never happened.

And in some cases, the opposite happened, the renminbi depreciated.