Skip to main content

To fight back Trump, China still has three major destructive weapons

US President Trump’s tariff on China’s 200 billion US dollars has risen to 25%, which has caused the US-China trade war to heat up again. Although China has not yet resorted to counter-measures, experts believe that Beijing still holds three major counter-attack weapons, including The depreciation of the renminbi, the sale of US Treasury bonds, and the refusal to purchase US soybeans, etc. But the measures have to be taken carefully, otherwise they may hurt China itself.

Weapon 1: RMB depreciation

China can offset the impact of US tariffs on the Chinese economy through the depreciation of the renminbi. However, Wang Tao, the chief Chinese economist at UBS, pointed out that the depreciation of the RMB in 2015 caused capital outflows and also weakened domestic confidence. So China may have  concerns to use this weapon.

Weapon 2: Selling US Treasury bonds

China currently holds US$1.1 trillion in US Treasury bonds. As the biggest amount holder of most US debts, the reduction of US debt is a powerful weapon against the United States. However, the mainland has a foreign exchange deposit of 3.1 trillion US dollars. In addition to purchasing US debt, there is no better investment pipeline, so it is unlikely to reduce US debt.

If the mainland sells US Treasury bonds, it will lead to a sharp fall in prices and a rise in yields, which will not only devalue the US debt in its hands, but also cause the US dollar to soar and bring greater risks to the financial market.

Weapon 3: Refusing to buy American soybeans

Mainland China is the largest buyer of soybeans in the United States. The US soybean growing area is the ticketing warehouse for Trump. It is very important for Trump. Therefore, compared with the RMB depreciation and the sale of US Treasury bonds, not buying the US soybeans could be a more feasible way of fighting back.

(source from China Times )
Labels:

Comments

Post a Comment

Popular posts from this blog

span[class~="sr-only"]

  The  span[class~="sr-only"]  selector will select any  span  element whose  class   includes   sr-only . Create that selector, and give it a  border  property set to  0 . span [ class ~= "sr-only" ] {    border:   0 ; }
Post a Comment
Read more

Simmons Will not use the three-pointer as a conventional weapon, it is difficult to shoot like Curry Soup.

Since entering the league, Ben Simmons's physical condition, athleticism, vision and off-season offense are top-notch, but only shots have been criticized. In the first two seasons of his career, Simmons made a total of 17 shots from three-pointers. In 0, when he is shooting on the outside, the opponent can make a "please" gesture at will. But even if he is not good at shooting, Simmons is still selected for the All-Star team last season. If he gets a shooting skill package? The prospects of Simmons are undoubtedly limitless. This summer, Simmons has been polishing his jumper under the guidance of trainer Chris Johnson. From some streaming videos, he can see that his three-point jumper has improved. In the preseason game against Guangzhou, Simmons hit the first three-pointer in his career, and in the subsequent game against the Hornets, he made a mid-range jumper. It seems that Simmons seems to have more confidence in his jump shot, and he is more willing to sho...
Post a Comment
Read more

An Australian Pelican feast that lasted more than two decades

Why are you so focused? It turned out that the pelicans were all waiting to eat fish with their heads up, hahahaha! In the Central Coast area north of Sydney, there is a beautiful and famous town called The Entrance, which has the title of "Australian Pelican Capital". What makes a town so honored? The reason is these cute toucans. Every afternoon, the pelicans fly here from near and far, and there are no obstacles 365 days a year. As soon as 3:30, a staff member will push a large box full of fish to the small square where the pelicans gather, and the pelicans have long been eager to wait. This white-haired grandpa came to feed today. I saw the grandfather skillfully put on rubber gloves, while taking a fish out of the box and throwing it at the pelican, he interacted with the onlookers and introduced the knowledge of the pelican. The noise of the pelicans competing for the fish and the exclamation of the onlookers crowded into one, the atmosphere was warm. A clever pelican s...
Post a Comment
Read more