Tag Archives: yuan

Managing The Dragon’s 2019 Predictions

“If you are going to be a bear, be a grizzly,” my father used to tell me. That’s the way I feel about going into 2019 with my five predictions for the New Year. Four of the five are dependent to a greater or lesser degree on the trade war between the United States and […]

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2018: A Tough Year For China Autos

2018 is shaping up to be a tough year for the automobile industry in China.

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Managing The Dragon’s 2017 China Predictions

Ever since MTD began making China predictions in 2009, the state of China’s economy has been a major question mark. For that reason, I have felt compelled to throw my hat into the ring and make my own prediction for the growth of China’s gross domestic product (“GDP”).

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Currency: The End of The Discussion With China

Last week’s G-20 meeting in Seoul, South Korea was intended to be the venue where President Barack Obama would turn up the heat on China to revalue its currency against the dollar. That’s not exactly what happened. In advance of the meeting, the Federal Reserve announced that it would buy $600 billion of Treasuries to […]

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The Currency War: Post-Seoul

Those of us involved with China on a daily basis have been living with currency issues for a long time. Ever since China began racking up large trade surpluses with the United States, politicians and special interest groups in the United States have been charging that China keeps the renminbi undervalued in order to make […]

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China’s Currency Basket: One Month Later

On June 19, the Peoples Bank of China released the yuan’s peg to the U.S. dollar, and announced that it would instead peg the yuan to a basket of currencies. China regards the composition of the currency basket as a state secret, and officials haven’t publicly disclosed what currencies are being used in the basket. […]

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Is China Buying the Euro?

After dropping precipitously from over $1.50 at the beginning of 2010 to a four-year low of $1.19 on June 7, the Euro has been recovering ever since. On Friday, the Euro closed at $1.26, up sharply in the week’s last three days of trading. Not wanting to suffer the same plight as Greece, Germany, the […]

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Expect a Yuan Revaluation Soon

The Euro is under attack. As a result of problems in Greece, the massive relief package assembled by the European Economic Union to bail out the country, and economic storm clouds hanging over Portugal, Spain and others, the Euro is tumbling in value against the U.S. dollar. The Euro has declined 14.7 percent from the […]

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Ben Franklin Survives Yet Another Facelift

In order to describe China’s different and lower cost perspective, I tell audiences that when Americans come to China and see a 100 RMB bill, they automatically divide by 8, the approximate exchange rate between the U.S. dollar and the RMB for most of the time that I have been here, and really see the […]

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A Revalued Yuan: Be Careful What You Ask For

U.S. Treasury Secretary Timothy F. Geithner made a brief stop in Beijing on Thursday, meeting for 45 minutes with China Vice Premier Wang Qishan in a private room at Beijing Capital Airport. Although details of the discussion have not been released, the obvious purpose of the meeting was to discuss face to face whatever agreement […]

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