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Japanese expert: US-China trade frications detrimental to world economy

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Added On August 16, 2019

Kiyoyuki Seguchi, research director at the Canon Institute for Global Studies, said:
 
" It is a consensus within the international financial community that the Chinese government cannot devalue its currency, the renminbi, by intervention. The decision to label China as a "currency manipulator" was likely made by a minority group in the White House. If the United States continues to adopt relevant sanctions based on this allegation, its legitimacy will be widely questioned by the international community."
 
Research Director, Canon Institute for Global Studies
   
Hidetoshi Tashiro, chief economist at Sigma Capital Ltd. echoed that sentiment.
 
He said Labeling other countries as "currency manipulators" is a negotiating tool for the United States. What happened to China today could happen to Japan and other regional economies in the future.
 
Mihoko Hosokawa, chief researcher at Japan's Mizuho Bank Ltd. (China), attributed the drop in the exchange rate to U.S. President Donald Trump's announcement of a "fourth round" of tariffs on Chinese imports starting September.
 
She said While there has been an outflow of capital amid strong concerns about trade frictions, there is also an inflow of capital as the Chinese government continues efforts to open up areas such as financial markets. Chances are slim that a further sharp depreciation of the renminbi will occur before the U.S. administration's new additional tariff is in place.