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  • » 11/16/2016, 08.59

    CHINA-US

    Yuan value falls, bad and good for the US

    Paul Wang

    The renminbi fell to 6.86 against the US dollar, its lowest value in eight years. Depreciation favors Chinese exports. For Trump (and Obama) China is a "currency manipulator". But with a diving Chinese yuan, capital transfers abroad increase.


     

    Hong Kong (AsiaNews) - Today, too, and for the ninth day in a row, the value of the yuan fell reaching the lowest level for eight years now. This morning the value of the renminbi offshore and onshore is below 6.86 against the dollar.

    By the victory of Donald Trump in the US, the yuan has fallen more and more. During his election campaign, the newly elected president has often accused China of being a "currency manipulator" and promised to put taxes on Chinese imports up to 45%. Trump accuses China of deliberately devaluing the yuan, to make its export products competitive.

    Some analysts point out that even Barack Obama in the past accused China of currency manipulation, but there was no follow-up.

    The reason may be that with the devaluation of the yuan, many middle-class or wealthy Chinese are seeking to invest in hard currency or purchase goods abroad, especially in the US.

    During the election campaign, Trump promised to invest at least one trillion dollars over the next 10 years in infrastructure, including "motorways, bridges, tunnels, airports, schools and hospitals." This plan would be supported by private investors. And many Chinese are already studying the possibility to participate in such investments. According to many experts, there is an "unprecedented exodus of funds" from China to the US.

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    See also

    29/07/2009 CHINA – UNITED STATES
    US and China planning new world financial system to save themselves from crisis
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    10/02/2017 09:06:00 CHINA-US
    First "friendly" phone call between Trump and Xi Jinping. "One China" reaffirmed

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    20/01/2017 13:29:00 CHINA - UNITED STATES
    The Trump era begins: The China-US relationship and the risk of war

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    20/11/2009 CHINA – UNITED STATES
    US Congress threatens sanctions over China’s yuan
    After Obama’s requests and the silence of China’s leaders, there is no sign that war over the value of the yuan is over. For some economists, Beijing’s monetary policy is helping the US contain inflation whilst making it easier for the world to pull itself out of the current crisis. For others, it is destroying the manufacturing capacity of the rest of the world whilst enslaving much of China’s population.

    12/12/2016 10:03:00 CHINA-USA -TAIWAN
    Trump questions "one China" policy. Beijing accuses him of ignorance and threatens retaliation

    In an interview broadcast yesterday, the neo-US president rejects the principle of almost thirty years without concessions on trade or other agreements. He defends his right to speak to the president of Taiwan. The Global Times accuses him of being "ignorant as a child" in terms of foreign policy. Threatens total control of the Straits.

     





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