3 ms·
The US really has China in a bind here, and few will admit it. China needs to weaken its currency to offset tariffs by making their exports cheaper...but China
by partiallypro 7y ago
The US really has China in a bind here, and few will admit it. China needs to weaken its currency to offset tariffs by making their exports cheaper...but China is very very short on dollars, and each devaluation makes their onshore debt much harder to maintain. I'm sure China is waiting out the 2020 election, hoping the next President will be more dovish on China...but I think everyone (except Biden) is pretty hawkish on China within that Democratic field.
- ETHisso2017 7y ago>China is very very short on dollars $3T of dollar reserves would like to have a word with you.
- partiallypro 7y agoa) Investment banks don't believe that number is completely accurate b) China has used a lot of reserves propping up offshore RMB. c) It's a lot more complicated than that. d) 1.2 trillion in dollar debt has to be rolled over just this year https://www.bloomberg.com/opinion/articles/2019-01-06/china-s-dollar-debt-is-surging-and-that-spells-trouble https://www.bloomberg.com/opinion/articles/2019-01-06/china-...