The central bank’s interventions cannot reverse the trend of a depreciating RMB, but past lessons suggest that the USD/CNH may be near its peak.
Continue Reading
The scope of the plan is quite limited; the White House’s goal is to allow US investors to continue investing in less-sensitive areas of Chinese tech.
July economic data were bad across almost every category, and August is likely to be another very bad month.
US politicians have brought up several proposals on the matter, but none are likely to materialize in the near future.
The Politburo acknowledged at its Monday meeting that the economy is facing difficulties and pledged to offer more support.
Whether and how most companies will be affected is still unclear, but some foreign investors may be spooked by the uncertainty in the meantime.
Exports and real estate continue to be a drag on the economy, but household spending is recovering well.
Blocked from selling advanced chips and facing stiffer competition on legacy chips, companies may lobby Washington to loosen controls.
The RMB’s share in global forex reserves has declined despite higher allocations by central banks in Russia and Brazil.
The trip also raises the possibility of tighter US sanctions against China, which will reinforce Beijing’s view that the US is saying one thing and doing another.