12 October 2018 / China
No 'competitive devaluation' in China
When the Trump administration asserts that China steals intellectual property, violates foreign investor rights, engages in wrongful wholesale subsidisation of the economy, and raises questions about industrial policy pursuant to 'Made in China 2025', it stands on solid ground. Its assertions about 'competitive devaluations' by China, however, do not stand up to scrutiny. The renminbi's decline primarily reflects a strong US economy as well as contrasting cyclical developments in China, notwithstanding the efforts of Beijing's officialdom to curb pressures on the currency.