Monday, 12 December 2016

China. UNDE® P®essure

Is the 1981 hit by Queen, featuring David Bowie.

If it looks like it , and feels like it, then it most probably is it. If that indeed is true ,than China is UNDER PRESSURE, because Donald Trump might just be pushing China into a street fight over Taiwan.

This is something , China do not want to do, because apart from that war against INDIA, China has lost all the MAJOR wars it fought over the past 200 years.

So China is instead trying some corny PR war ,which looks to me, as ill advised, and only goes to show China is AFRAID of Trump's USA.

Read Bloomberg Below :

President-elect Donald Trump has accused China of ripping off the U.S. on trade and threatened to brand the country a currency manipulator soon after taking office. Yet economists say his new best bud and China nemesis, Taiwan, is much better suited to bearing that damning label.

Sure, China's trade surplus with both the U.S. and rest of the world is far larger than that of the island. But measured as a share of the economy – arguably a better way of judging whether a country is taking advantage of its trading partners – Taiwan's overall surplus is more than six times the size of China's.  

"The case for naming Taiwan a currency manipulator is far stronger than the case for naming China," said Brad Setser, a senior fellow at the Council on Foreign Relations in New York and a former Treasury Department official.

In its October foreign exchange report, the outgoing Obama administration gave both Taiwan and China a pass by not naming either a currency manipulator.

The president-elect flouted almost four decades of diplomatic protocol this month by directly speaking with the leader of Taiwan, drawing a rebuke from Beijing. The dispute escalated this week, with Trump saying he wouldn't allow China to dictate to whom he could talk and Beijing warning him that Taiwan was irrevocably a part of China.

The Taiwanese dollar is undervalued by more than 25 percent against the currencies of its trading partners, giving its exporters a huge competitive edge, according to calculations by William Cline, a senior fellow at the Peterson Institute for International Economics in Washington. China's yuan, in contrast, is more or less fairly valued by his reckoning, which takes account of current and prospective trade flows.