China wants its yuan to weaken against major world currencies to help its struggling economy during the US trade battle. The yuan fell to financial crisis levels against the dollar Thursday before recovering slightly as Chinese leaders prepare to discuss stimulus plans. Their currency also hit a 15-month low against trading partners' currencies.
More people bet against the yuan after China's central bank lowered its reference rate for six days straight. This carefully managed decline makes Chinese products cheaper abroad compared to other countries' exports. The strategy might counter some effects from Trump's massive 125% tariffs, which threaten trade between these economic giants.
Trump targeted China specifically with his trade attack but paused tariffs on many other nations. Beijing responded with 84% taxes on American imports, promising to fight until the end. China appears careful not to devalue too aggressively since that could damage confidence in Chinese investments and further anger America.
Trump already accused China of manipulating currency values to offset tariffs. Treasury Secretary Bessent called China the worst trading system offender. Experts believe China needs to maintain relationships with trading partners during these fragmented global trade times.
More people bet against the yuan after China's central bank lowered its reference rate for six days straight. This carefully managed decline makes Chinese products cheaper abroad compared to other countries' exports. The strategy might counter some effects from Trump's massive 125% tariffs, which threaten trade between these economic giants.
Trump targeted China specifically with his trade attack but paused tariffs on many other nations. Beijing responded with 84% taxes on American imports, promising to fight until the end. China appears careful not to devalue too aggressively since that could damage confidence in Chinese investments and further anger America.
Trump already accused China of manipulating currency values to offset tariffs. Treasury Secretary Bessent called China the worst trading system offender. Experts believe China needs to maintain relationships with trading partners during these fragmented global trade times.
