Yuan And Why
Source: SeekingAlpha
2025-04-18 08:02:00 ET
Summary
- With the U.S. imposing aggressive tariffs on Chinese goods, conventional wisdom suggests that Beijing will retaliate with a sharp devaluation of the yuan to counter the economic shock.
- For the US, finding alternatives to Chinese suppliers - especially in high-tech sectors and rare earths - will not be easy, especially in the near- to medium-term.
- By maintaining currency stability, boosting domestic, and continuing to diversify its export markets, China is well positioned to absorb the shock from Washington.
With the U.S. imposing aggressive tariffs on Chinese goods, conventional wisdom suggests that Beijing will retaliate with a sharp devaluation of the yuan to counter the economic shock. But this assumption is flawed. The level of devaluation required to fully offset tariffs exceeding 100% would be extreme, risking financial instability and undermining confidence in China’s economic management. Instead of reacting impulsively, Beijing remains committed to yuan stability, signaling a calculated strategy rather than desperation....
Read the full article on Seeking Alpha
For further details see:
Yuan And Why
Direxion Daily FTSE China Bear 3X
NASDAQ: YANG
YANG Trading
7.68% G/L:
$27.76 Last:
871,999 Volume:
$27.24 Open:
