China is divided on whether it will be necessary to let its currency weaken as a new U.S. trade fight approaches https://t.co/Arc7xVJdGd
Good article from @Lingling_Wei and Rebecca Feng on the debate inside Beijing over how long to maintain the yuan's current stability ... https://t.co/XWfJQTZuuz
Even in 2019, the US urged China to maintain the stability of the RMB as part of ongoing trade negotiations between the two economic giants. This was intended to prevent Beijing from devaluing its currency to offset US tariffs. The US had then tied the condition of the removal of…
As the U.S. prepares for a new trade confrontation under President Trump, China is facing internal debates regarding the future of its currency, the yuan. Investors anticipate a gradual weakening of the yuan against the U.S. dollar, driven by falling domestic interest rates and the impending threat of tariffs. Beijing is currently reluctant to devalue the yuan significantly, seeking to avoid provoking Trump and maintain negotiation channels. Historical context underscores this caution; following a 2019 decision to let the yuan slip past the 7-to-dollar mark, Trump responded with increased tariffs and labeled China a 'currency manipulator.' The ongoing discussions within Chinese leadership reflect a balancing act between economic pressures and diplomatic considerations.