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China plans to weaken the yuan in response to Trump's tariffs


Aralık, 11 2024
watermark Economic news

The Chinese leadership is considering the prospect of a weakening of the national currency in 2025. This step is due to preparations for a possible increase in US trade tariffs during the second term of Donald Trump's presidency. 


Some sources report that this strategy indicates that China is aware of the need for more significant economic incentives to counter Trump's threats to raise tariffs.


In his statements, Donald Trump expressed his intention to introduce a universal import tariff of 10% and set a 60% tariff on imports of products from China to the United States. In light of such statements, Beijing is considering the possibility of weakening the yuan as a way to make exports of its goods more attractive on international markets by reducing their value. 


This will not only reduce the impact of the proposed new tariffs, but also create more favorable financial conditions in China, which can help stimulate economic growth and maintain stability in the domestic market. In the context of global economic uncertainty, such an approach can become an important element of China's strategy to maintain the competitiveness and sustainability of its economy.



    






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