Is US-China in A ‘Cold War’?
China is not manipulating its currency, according to Monday’s comments by the nation’s foreign ministry spokesman Geng Shuang.
Shuang emphasized that the exchange rate of the Chinese yuan is “market-determined” and that there are “ups and downs”, possibly trying to quash U.S. President Donald Trump’s recent views on the currency. Trump hinted at what he believes to be a possible “manipulation” by China in pushing down the yuan’s value in recent times.
Yuan is almost at a one-year low against the U.S. dollar, having trended down through more than a month now. Trump is apparently worried about the adverse effect a weakening yuan could have on U.S. competitiveness in the export market, especially amidst the Fed’s policy rate hikes this year.
Late last week, the U.S. President claimed that, if he feels the need, he’s ready to slap tariffs on all of the $500 billion worth of Chinese goods that the U.S. imports – suggesting that he’s prepared to up the ante on the ‘trade war’ with China.
Shuang, however, mentioned on Monday that China “does not want a trade war but we are not afraid of one”.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
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