Chinese-Dragon
RETIRED TTA
- Joined
- Jul 9, 2010
- Messages
- 33,932
- Reaction score
- 52
- Country
- Location
Technically the Yuan should always be rising, due to China's consistent trade surplus as well as inward investment. But China balances it out by lending money overseas, buying assets overseas, investing overseas, and buying foreign currency and related assets from overseas.
Which is one of the reasons why China has such enormous currency reserves. China is trying to maintain a managed float of the Yuan's value to prevent it rising too much. But it's not such a problem anymore due to how much money China is lending and investing overseas.
Definitely yes.
However it is not politically useful for China to be seen as the largest economy, otherwise the rest of the world will expect too much from us.
Which is one of the reasons why China has such enormous currency reserves. China is trying to maintain a managed float of the Yuan's value to prevent it rising too much. But it's not such a problem anymore due to how much money China is lending and investing overseas.
China's economy is definitely underestimated. Just look at the infrastructure, and auto sales, etc., no other country in history has ever achieved this:
https://defence.pk/pdf/threads/chinas-auto-sales-volume-reached-28-88-million-in-2017.540557/
Definitely yes.
However it is not politically useful for China to be seen as the largest economy, otherwise the rest of the world will expect too much from us.