China Promises Not to Use Currency Devaluation to Its AdvantagePosted: February 24, 2017
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.