The conclusions of the report are well supported by data and facts. Chinas current account surplus as a share of GDP declined by about 1 percentage point to 0.4% in 2018, and is expected to remain at 0.5% in 2019. On August 9, the head of the relevant IMF departments made a very clear statement in the media-oriented conference call that the RMB does not obviously overestimate or underestimate.
Its time for the farce of currency manipulators to end!
The invisible hand in the market will make the wishful abacus of some Americans unable to calculate the wishful result in the end. UBS economists report that if the US imposes tariffs on $300 billion of Chinese imports to the US, the RMB exchange rate will be further depreciated against the US dollar driven by the market. Thus, although some Americans fear that the devaluation of the RMB will offset the effect of their tax stick, the role of the market is bound to far exceed that of some Americans who manipulate ideas. In this case, they are busy putting the label of currency manipulator on China, which is nothing more than a mess. Now, the conclusion of the IMF has made this mess impossible.
However, the world has a deeper understanding of the manipulative performances of some people in the United States. As Jeffrey Sachs, director of the Center for Sustainable Development at Columbia University, wrote on CNN recently, some Americans, as the sole manipulator, have caused serious damage to the U.S. economy, the world economy and even the global trading system by tariff policies for no reason.
Various signs show that some Americans insist on manipulating the harm brought by escalating economic and trade frictions, which has increasingly aroused world concern. An analysis of the global market situation over the past week by Reuters pointed out that Sino-US economic and trade frictions put a gloomy challenge on the global growth prospects. With the surge of interest rate cuts, more and more central banks have introduced easing measures that exceed market expectations. What is the future? More and more countriescurrency exchange rates are falling, which means that the relative appreciation of the US dollar is expected to increase, and the energy stick of the US to stimulate exports will prove to be failure again.
Even a symbolic devaluation of the renminbi can lead to a sharp fall in the US stock market. Paul Krugman, an American economist and Nobel Laureate in economics, recently published an article in the New York Times in the United States, arguing that some Americans overestimated their ability to cause damage to China, while underestimating the possible damage that China may cause in turn (to the United States), and that Chinas response so far is phase. When its mild and measured, its more like teaching economics to some people in the United States.
Where the economic law is, whether you understand it or not, it is there and it is working. International insights have repeatedly pointed out that international trade is based on mutual benefit, not on win-lose. Protectionist policies adopted by some Americans are the greatest threat to the modern open trading system.
In the final analysis, we need to focus on Sustainable development, seek trade balance, take the right path and take the main road on the premise of equality and mutual respect.