China commits suicide when currency Yuan devalued
Posted on August 7, 2019 Hoa Truong Posted in Published Articles
The war fights against the global economic terror come from China communist escalates by exchanging tariffs between the US and China. Therefore, China communist has flinched the Intercontinental Ballistic Tariffs Missile of President Donald Trump, obvious the tariffs 25% imposed $USD 250 billion on China products and goods deeply affected China economy, actually, the high unemployment rate appalls China regime.
China growth comes from stolen technology and the offshore market, so the export sector is very important, so in the boom time of the economy, China used at least 120 million workers. Therefore, the US market declined after the tariffs and the foreign companies moved out from the mainland or repatriated homeland aggravates the jobless. China communist fears the massive jobless can estimate hundreds of millions of people plus Chinese people abhore, the inhumane regime can collapse any time. China panics the second Tiennamen Square repeats, actually, the democratic movement will have the massive people join.
The potential weapon in the economic battle is tariffs, annually China just imports $USD 110 billion of the agricultural products from the US, while China products export to America is worth a half trillion of USD. The unbalanced trade occurred from many decades, actually, when Democrats ruled White House, China made a huge profit and also took the job of the US people. President Donald Trump announced from September 1st, 2019, the tariffs of 10% will impose $USD 300 billion of remaining products and goods import from China. Despite the tariffs have not applied yet, but China currency plunged and China angers by banning China companies buy the US agricultural products.
The people live in China mainland have no trust the agricultural products come from the socialism farm, the poison, contamination and the hygiene concern that frightens Chinese consumer, so Chinese people favor the US and Western products than the communist paradise goods. In 2008 the baby formula’s milk powder made in China killed 6 infants and the other 300,000 babies were sick (melamine-laced formula), so Chinese tourist including three China warships sailed to Sydney (Australia) rushed to buy the Australia baby milk powder. Moreover, the restaurants in Beijing, Shanghai, and the other cities are keen to other the meat, chicken imported from the US and the other Western countries because of the foreign tourist scares off the agricultural products in China, even fish and prawn used the banned chemical. Nevertheless, the foreign tourists doubt the meat in China, it could be human meat. So China imposed $USD 60 billion tariffs on the US agricultural products and banning China companies buy the US products that cost more losing the foreign tourists, moreover, Chinese consumer ignores the high prices to buy the safety goods import from the” capitalist”. The retaliatory tariffs of China hit back Chinese people living in the mainland.
China communist has failed to retaliate by tariff weapon, China just has a currency’s weapon to fight back. Therefore, China currency Yuan versus the US dollar is like an egg versus stone. China commits suicide to devaluate Yuan, Beijing believes the China products reduce the prices when the currency lows. The devaluation of Yuan worsens the situation and damaged China economy, it proves China communist exhausted the tactic to fight into the economic war. The outcomes of Yuan devaluation are:
- China can sell the products and goods with cheap prices, but the important consumption is the US market, but the US people have no favor China products, actually, the tariffs nullify China’s solution. China products can sell in the mainland, therefore, the communist regime does need the foreign currency, actually the US dollar.
- China must spend more money to buy the oil and materials and pay the debt plus interest.
- China imports goods and products with high prices
- The foreign tourists can come to China, but they fear the food and safety, actually, the citizen comes from the US, Canada, and Europe.
Obviously, the devaluation of Yuan doesn’t respond the urgent situation of China economy, certainly, there are more than billions of people live in the mainland must suffer the inflation, actually a half of Chinese population is due to poverty, the daily income earns from $USD 2 to 5. The currency devaluation means hurt Chinese people as a saying” sword made by China stabs Chinese”. Nevertheless, China Yuan hits the lowest valuation in a decade creates financial shock worldwide, President slams China causes the Dow Jone lost 767 points, certainly, China must receive the potential damages, Beijing has spent at least $USD 236 billion on its market bailout but the situation is uncertain. The damages measure on the countries deeply involved with China as Australia, the shares lost about $AUD 90 billion in value over two days, ASX plunged 192 points (2.9%) in a first 10 minutes of trade.
The world can know China is the culprit of global financial loss, the left media, and the countries have the trade ties with China couldn’t slam and shift the responsibility to the US, because the full tariffs have not applied yet on September 1st, 2019, but China devalued its currency.
China hurries to retaliate the US by reducing the Yuan’s valuation worsens the situation, actually, the countries have trade ties and financial exchange. The world fears China currency is uncertain, so the US dollar is the best choice, even Chinese people and high profiles of communist party stay away from its currency instead of the US dollar and the gold could avoid the asset’s loss. On Monday 4, 2019, China currency surpassed the alert level is 7 Yuan exchanges 1 USD, so when the tariffs apply next month, Yuan will face a big loss and the countries linked with China will not avoid the damages./.