30 April 2017
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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

    07/04/2017 14:21:00 USA - CHINA
    Trump and Xi meet, a summit of 'friendship'

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    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
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    The two have decided to work together in areas of "mutual interest". Reaffirming the principle of the one China defuses a source of unrest and possible wars. The conversation took place a few hours after the arrival of Shinzo Abe in the US.

     



    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.

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

    As the inauguration ceremony of the Trump presidency approaches, the Propaganda Bureau of the Chinese Communist Party has banned all journalists from “unauthorized criticism" of Trump’ words and deeds. According to the great dissident Wei Jingsheng there is a chance that Trump will force China into fair trade deals, possibly leading to political and legal reforms. A trade war is an option.





    Editor's choices

    EGYPT – VATICAN
    Pope in Egypt: Egypt called to condemn violence and poverty in the Middle East



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    ISLAM – VATICAN – EGYPT
    A Muslim writes to the pope: Dear Pope Francis . . .

    Kamel Abderrahmani

    He admires the charity shown by the pontiff towards Syrian Muslim refugees, and his push in favour of love and against hatred. Islamic scholars are not like this, he says, they do not denounce Daesh’s hatred and do nothing for Christians. He calls on the pontiff to press President to Sisi and Al Azhar to reform Islam. Without this Al Azhar risks being the academy of world fundamentalism. Here is the letter from our friend and collaborator Kamel Abderrahmani.


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