Bloomberg: the Chinese authorities will examine the possibility of devaluation of yuan

TASS, 9 APR. The Chinese authorities will examine the potential devaluation of the yuan against the background of problems in U.S.-China trade relations. On Monday reported, citing sources, Bloomberg.

According to him, the government had prepared an analysis of the national currency, which is investigating high-ranking officials of the PRC. The first part discusses the effect of using currency as a tool in trade negotiations with the United States, and the second – the consequences of the devaluation of the yuan to compensate for the influence from trade agreement, which limited exports.

As the Agency notes, such a study does not mean that the yuan will be devalued, because this step must be approved by the country’s leadership.

A new phase of deterioration in trade relations between Washington and Beijing began on 3 April, when the administration of Donald trump released a list of products from China, which planned to introduce an additional 25 per cent duty. In response, China’s state Council on Wednesday published a list of 106 titles American products on which duties would be introduced in 25%. The entry into force of the response depends on whether to impose the United States scheduled duties on Chinese goods.

On Thursday last week, Ministerstvo of Commerce of China said that Beijing initiated proceedings in the WTO against the unilateral actions of the United States against Chinese steel products and aluminium. Beijing appealed to the WTO over the imposition of US duties on Chinese imports based on the 301st article of U.S. trade act of 1974.