U.S. And China May Not Come Up With New Provisions in Their Currency Deal
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U.S. And China May Not Come Up With New Provisions in Their Currency Deal

A pending agreement on trade between the United States and China could very well put certain restrictions. The restrictions would be on the control that Beijing has over the strength of their currency. Officials and lawmakers in other countries have given their opinions. They believe that it is unfair on Beijing’s part to weaken the currency of China, compared to the US dollar and other currencies. Thus, the weak currency has given Chinese companies as well as the factories benefit when they sell goods abroad.

The Governor of China’s Central Bank, Yi Gang stated through a news conference about the high-level trade discussions held last month in Washington. He said that the two parties had come to an understanding of several key and important issues. It included that both nations would not devalue their currencies. Hence, there would be no chance to achieve a competitive advantage for all their experts. Moreover, the nations would also keep complying with the previous agreements on currency. The Officials in America have adopted varied stances on the provisions of currency. The trade representative of the United States has cautioned Congress. Robert E. Lighthizer said that almost nothing had fully resolved in trade negotiations till everything had got settled.

Since 2016, Beijing has gone on to respond with highly severe restrictions on capital movements. By making use of extremely formidable investigative as well as surveillance capabilities of the police in China, the government has put all those people behind the bars, who were involved in secret movements of cash abroad. This particular crackdown has completely put a stop to the huge flow of Chinese money into the real estate sector of America along with the soccer clubs of Europe in the year 2015 and early part of 2016.

Michael Calfee

About Michael Calfee

Michael is one of the important pillars of News Times Today. He has 5 years’ experience in covering global business and finance related news. He loves to explore the business world. Besides being a full-time journalist, Michael loves to listen to POP music and attends the concerts if he gets time from his busy schedule.
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