"Report": US-China economic tension depreciates yuan - ANALYTICS

"Report": US-China economic tension depreciates yuan - ANALYTICS China's national currency drops by 3% against US dollar
June 27, 2018 16:17
Report: US-China economic tension depreciates yuan - ANALYTICS

Baku. 27 June. REPORT.AZ/ Economic tensions between the US and China have risen again.

Analytical Group of Report informs, about a month ago, the US Treasury Secretary Steven Mnuchin said the US agreed with China and annual trade turnover between the two countries would increase by $ 200 billion.

After a decline of trading war between the two sides, about a week later,situation again aggravated with tough speeches of Vice Minister of the Ministry of Finance (MOF) of China SHI Yaobin.

He said that no agreement has been reached with US and any decision that the party will make will be responded in the same form. After imposing import tariffs on solar panels and washing machines in January, Trump moved to levy steel and aluminum in March along with about $50 billion in other goods.

President Donald Tramp's administration has explained this with China's desire to prevent unjustified steps in the production and export of technology. Because "China produces an analogue of the new technology, bringing it to the domestic and foreign markets. This is contrary to the interests of the United States even in the field of national security. All these conflicts have a negative impact on the Asian financial markets. For example, China's Shanghai Stock Exchange Index (SSE Composite Index) dropped by 3.4% and the Hong Kong Stock Exchange index dropped by 2.5%.

This situation and its possible outcomes are being debated with concern in China's economic circles and the media. In fact, there are serious grounds for worry. This is because of the decline in the Chinese economy's growth rate, the decline of the national currency of the country - yuan. For example, over the past two weeks the CNY / USD ratio has increased by 3% up to 6.6. Nevertheless, the tension in the US trade with China continues. Official Washington considers Beijing as a rival and it is not a secret.

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