[Open Deal] China “Looking to be defeated in a trade war… America ’s good! Yuan is cheap!”

[Beijing current affair] China turned to accepting the depreciation of the yuan as a de facto counter measure before the US sanctions tariff “fourth” was activated. The goal is to minimize the effects of US tariffs, but there are circumstances where retaliation tariffs alone cannot compete with the US. The original exchange rate against the dollar has been maintained at $ 1 = 6 yuan for more than 11 years. Chinese authorities positioned 7 yuan as a “psychological defense line” (Japanese securities), and defended the 6 yuan by market intervention. However, the authorities approved the entry of 7 yuan on August 5. As a result, Yuan depreciated, and at the end of the month, it was around 7.15 yuan. There is a view that the impact of the “fourth bullet” can be almost offset by 7.2 to 7.3 yuan in the market. The United States is trying to squeeze China with the recognition of a “exchange control country” and to increase pressure by raising the rate of sanctions duties. China, on the other hand, is wary of excessive yuan depreciation leading to the outflow of funds outside the country and disrupting financial markets, and is cautious about further yuan depreciation. Sanctions and retaliatory duties are subject to US $ 250 billion in the first and third rounds and $ 110 billion in China. The fourth (including the December implementation) is US $ 300 billion and China $ 75 billion, and China's inferiority stands out against the backdrop of trade imbalances. In the market, it is also observed that China will move to restrictions on exports of rare earths, sales of US bonds, restrictions on transactions with US companies, etc. in addition to the approval of Yuan. However, the effects seem to be limited, and the fact is that no effective countermeasures can be taken before the US offensive. * Some excerpts from the link below. Continue with the source https://www.jiji.com/jc/article?k=2019090100298&g=int document.write(” + ”); Related article document.write(” + ”);