Yuan on Track for Worst Monthly Performance in More Than a Year

[GeraltofRivia]

Don't know macro-economics,

Who can easily tell us it will benefits or damage the common people's daily life?

Overall it should benefit everyone in China as China is an exporting oriented economy and exporters will be earning more profit and in turn demanding more staff and paying higher salary. The goods directly imported from US will become more expensive, which probably means one would find similar goods from EU becoming more attractive.

 

[TaiShang]

Overall it should benefit everyone in China as China is an exporting oriented economy and exporters will be earning more profit and in turn demanding more staff and paying higher salary. The goods directly imported from US will become more expensive, which probably means one would find similar goods from EU becoming more attractive.

Actually, since 2015, consumption has contributed more to the GDP than exports. China is moving from the classic Asian export-oriented economy.

Another significant development is export diversification. First, value-added percentage has risen. Second, more countries and regions have China as their largest trade partner. And, ideally, most of these countries/regions can rely on Yuan or their currencies to do trade with China.

Besides, US share in China's export has fallen continuously although it still occupies the highest percentage point.

So, for China, the way forward is to further diversify export markets, increase value-added content, and shift trade from USD to domestic currencies.

One cannot still escape from the USD, especially a country like China which consumes huge amounts of raw materials and hydrocarbons, but, China does have greater number of policy tools than many other countries to reduce the impact of the USD fluctuations.

 

[powastick]

Nice try Wallstreet, nobody is getting baited.

 

[yusheng]

anyone knows？
how many American companies living in China； how much they invested in china; how much dollars they remitted back to American every year?
what they have most is RMB.
if their profits went down, what impact is to American financial market?
then you can easy to understand why US always appoints China control exchange rate and wants the appreciation of RMB.

on the other hand,
From July 2016, after the show of US on SCS, China has sold out more than 100b U.S. Treasury bonds, caused the price of TB went down to 2.35%, from the 1.36%, annual rate. On November 11th, only in one day, investors of US TB lost 337 billion dollars facing the U. S. government bond prices shrink .

this is only a small counterattack.