Title: Why China's Currency Tangos With The USD
Headings: Why China's Currency Tangos With The USD
Why China's Currency Tangos With The USD
An Economic Miracle
U.S. China Trade War
China’s Currency Policy
Opposing Viewpoints
Implications of Yuan Revaluation
Mitigating Factors and Glimmers of Hope
The Bottom Line

Content: It should be noted that such bullish estimates about China’s long-term growth prospects are viewed with considerable skepticism by a growing number of economists and market watchers.) China’s rapid growth since the 1980s has been fueled by massive exports. A significant chunk of these exports goes to the U.S., which overtook the European Union as China’s largest export market in 2012. China, in turn, was the United States’ second-largest trading partner until July of 2019, and its third-largest export market, and by far its biggest source of imports. The tremendous expansion in economic ties between the U.S. and China - which accelerated with China’s entry into the World Trade Organization in 2001 - is evident in the more than 100-fold increase in total trade between the two nations, from $5 billion in 1981 to $559 billion in 2013. U.S. China Trade War
In 2018, The Trump administration, which has routinely accused China of manipulating its currency to boost its exports, launched a series of tariffs against Chinese imports. China retaliated with tariffs of its own on U.S. imports, and the world's two largest economies have ratcheted up trade tensions through the summer of 2019. On August 5th, 2019, China lowered the value of the Yuan below its 7 to 1 peg against the dollar in response to a new series of U.S. tariffs on $300 billion worth of goods set to go into effect Sept 1. China’s Currency Policy
A cornerstone of China’s economic policy is managing the yuan exchange rate to benefit its exports. China does not have a floating exchange rate that is determined by market forces, as is the case with most advanced economies.