Contrary to Donald Trump's accusations, China has sought to keep the renminbi-dollar exchange rate relatively stable, in the face of strong downward pressure on the renminbi. At a time when US policy can change with a tweet, which exchange-rate policy would enable China to maintain currency stability?
HONG KONG – At the recently concluded World Economic Forum Annual Meeting in Davos, Switzerland, Chinese President Xi Jinping mounted a robust defense of globalization, reaffirming his country’s “open door” policy and pledging never to seek to start a trade war or to benefit from devaluation of its currency. Soon after, US President Donald Trump, in his inaugural address, effectively made the opposite pledge: using the word “protect” seven times, he confirmed that his “America first” doctrine means protectionism.
HONG KONG – At the recently concluded World Economic Forum Annual Meeting in Davos, Switzerland, Chinese President Xi Jinping mounted a robust defense of globalization, reaffirming his country’s “open door” policy and pledging never to seek to start a trade war or to benefit from devaluation of its currency. Soon after, US President Donald Trump, in his inaugural address, effectively made the opposite pledge: using the word “protect” seven times, he confirmed that his “America first” doctrine means protectionism.