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Tuesday, February 28, 2017
US should understand China more
ANBOUND

Donald Trump's administration has gradually shifted from being aggressive to relatively pragmatic. Anbound economist Zhong Wei believes that the Trump’s administration seems to have never realized that if the United States and China are partners, then the United States can obtain more benefits from China than any other country in the world. However, if the United States wish to contain China, that would be damaging for itself. On the exchange rate issue, the renminbi has become the second strongest currency after the US dollar since the subprime mortgage crisis. If the United States takes actions on the renminbi exchange rate, it is enough to scare off national bond support from Germany, Saudi Arabia and other economies. Coupled with the huge American fiscal deficit, China's reduction of holding US dollar foreign exchange reserves, the United States should understand China more.

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