Chinese Vice-Premier Liu He (second right) met with US trade representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin in Shanghai last week. Photo: Reuters
China’s ‘weaponised’ yuan, report of suspended US farm purchases create grim outlook for trade talks
- Beijing allowed the yuan to weaken beyond the political significant exchange rate of 7 to the US dollar on Monday morning
- China has also reportedly cancelled orders for US farm products in response to Donald Trump’s threat of increased tariffs on Chinese goods
Topic |
Currency war
Chinese Vice-Premier Liu He (second right) met with US trade representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin in Shanghai last week. Photo: Reuters
The People’s Bank of China (PBOC) blamed the drop “to unilateral trade protectionism, as well as expectations of more tariffs on China”. Photo: AP
China blames Donald Trump’s trade war tariff threat as yuan weakens below 7 to the US dollar
- First time yuan has dropped below level since offshore trading started in Hong Kong in 2010, and the lowest in the onshore market since April 2008
- Drop came only days after the US president threatened to impose a new 10 per cent tariff on US$300 billion worth of Chinese products from September 1
Topic |
Currency war
The People’s Bank of China (PBOC) blamed the drop “to unilateral trade protectionism, as well as expectations of more tariffs on China”. Photo: AP