A thaw in Sino-US relations – MoneyWeek

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Americathisweekdecidedtopostponethemid-AprilreleaseofaTreasuryreportthatwaswidelyexpectedtocallChinaacurrencymanipulator。

Anti-ChinasentimenthasbeenmountinginCongressaspoliticianshavecomplainedthatChinaspolicyoffixingtheyuantothedollargivesitanunfairtradeadvantage。

Chinanowappearstobesignallingthatitiswillingtoendthepeg。

AseniorgovernmenteconomistsaidChinacouldwidenthedailytradingbandfortheyuanandallowittoappreciate。

Whatthecommentatorssaid

Protectionismthrottledworldtradeinthe1930sanddeepenedtheDepression,saidRandallForsythonBarrons。

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AconfrontationbetweentheUSandChina,withAmericaslappingtariffsonChinesegoodsandChinaretaliating,couldhavehadasimilarlydisastrousimpacttoday。

Luckilyitlooksasiftheyreworkingtopreventareplayofthepolicyblundersofthe1930s。

Kickingthereportintothelonggrasswaspoliticallysmart,saidCapitalEconomics。

ItletsChinachangeitscurrencyregimewithoutappearingtobowtoUSpressure。

ReformingthecurrencyregimewouldhelpChina,saidIanCampbellonBreakingviews。

Afterall,inflationisrisingquicklyandcheaperimportswouldtemperthetrend,whilerevaluationwouldalsoboostChineseconsumerspurchasingpower。