China Promises Not to Use Currency Devaluation to Its Advantage


In its report yesterday on its exclusive interview with US President Donald Trump titled “Exclusive: Trump calls Chinese ‘grand champions’ of currency manipulation”, Reuters says:

President Donald Trump declared China the “grand champions” of currency manipulation on Thursday, just hours after his new Treasury secretary pledged a more methodical approach to analyzing Beijing’s foreign exchange practices.

In an exclusive interview with Reuters, Trump said he has not “held back” in his assessment that China manipulates its yuan currency, despite not acting on a campaign promise to declare it a currency manipulator on his first day in office.

However, on the contrary, Reuters says in the report, “China’s central bank has spent billions of dollars in foreign exchange reserves in the past year to prop up the yuan to counter capital outflows.”

Whatever the fact, China wants to satisfy Trump in order to have win-win cooperation with Trump. In another report yesterday titled “China says no intention of using currency devaluation to its advantage”, Reuters quotes Chinese Foreign Ministry spokesman Geng Shuang as saying in a daily media briefing, “China has no intention of seeking foreign trade advantages via an intentional devaluation of the renminbi. There is no basis for the continued devaluation of the renminbi”.

Geng’s promise on China having no intention of currency manipulation proves what I said in my previous posts that Trump has got what he wants in his telephone talks with Chinese President Xi Jinping.

He has got China to ban import of North Korean coal to pressure North Korea.

He has got China’s promise not to manipulate its currency.

It proves that he is a shrewd businessman and has used his shrewdness in US diplomacy. It also shows Chinese leaders’ wisdom in seeking win-win cooperation with the US.

Comments by Chan Kai Yee on Reuters’ reports, full text of which can be viewed respectively at http://www.reuters.com/article/us-usa-trump-china-currency-exclusive-idUSKBN1622PJ and http://www.reuters.com/article/uk-usa-trump-china-currency-idUSKBN1630VK.

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3 Comments on “China Promises Not to Use Currency Devaluation to Its Advantage”

  1. Steve says:

    Absolute Rubbish.! China shall not make any such childish promises. It’s because America has a lousy management in economic policy, at the end of the business day, exchange rates around the world fluctuate greatly whether thru interest rates, govt. intent or market sentiment as seen in a stock market. China is Not a punching bag and has the political and economic wisdom to repel the US scoundrels, if they wish to pick a fight with the fiery dragon. Since 2005, the Chinese govt. has raised the value of the Yuan by a third close to a market driven sentiment. The Yuan sits between 6.2 – 6.5% per dollar and is no longer devalued. As a result, Chinese exporters have to shut down and relocated to Vietnam, Bangladesh, Cambodia, Laos, a country in Africa, now Mexico and elsewhere. As a result, jobs were lost and Chinese economy suffered.

    Sushi nation Japan supposedly a free market country under notorious WW11 grandson Abe induced an almost 50% devaluation of the Yen in just three years. And what about India, buying dollars when the Rupee appreciates too much and selling them when the currency depreciates significantly.

    To keep it really brief, just hours ago, the chief American investment expert John Rutledge of Global investment firm Safanad said, “TRUMP IS AN IDIOT”, because old head Trumpy has no clue what currency manipulation means. Trump need to sack that Navarro guy and then sack himself from the White House.

    In 2016, China’s authorities had to sell a trillion $$$$ worth of foreign reserves to support the falling Yuan because Chinese nationals are trying to get their money out of the country. This commendable action by the Chinese government is call ANTI MANIPULATION not currency manipulation.

    Trump Dumb Dump is Not a shrewd businessman, he is now a confirmed Idiot. One of America’s greatest investors Warren Buffet says that he wished Donald Trump would release his
    tax record. I believe the only reason why Trump would not release his tax accounting is to avoid ‘shadowy manipulative details’ being exposed that could impeach the President and possibly arouse shareholders suspicion.

    Like

  2. Mad Max says:

    “US President Donald Trump titled “Exclusive: Trump calls Chinese ‘grand champions’ of currency manipulation”, Reuters says”

    So much hogwash. Obama II? Obama Ver. 2.0?

    Like

  3. Simon says:

    Then what did Trump offer Xi in exchange for this so call win win relations you speak of? Remember One China Policy was not part of any bargaining.

    Like


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