They have a closed capital account. The Yuan isn’t freely exchanged. It’s a fiat currency of a fiat currency. This is how they manipulate its value. Everything flows through dollars.
yuan is worthless outside of China.
This is their conundrum.
China , with its huge population, does not produce enough on its own to survive( esp food)
An American farmer does not accept a Chinese yuan in exchange for soybeans for example
So therefore China had to export their way to get the dollars to buy the food to feed their population. But to compound that, they have to import the raw materials to manufacture the good to export to get dollars, and that require more dollars (to purchase raw materials)
Thus makes them extraordinary sensitive to dollar fluctuations and interest rates, and especially stuff like tariffs. And that is why they have a closed capital account (to manipulate the currency to make sure they are always at a competing advantage to export good so that they can get the dollars to import food and raw materials etc etc)
Trumps tariffs put Chyna in a downward spiral because they could never export enough to get the dollars they needed to buy the stuff they needed to make the stuff they export to get dollars ( and feed their population. )
If the the USA refuses to pay the debt China because of Coronavirus and the election meddling, the CCP implodes overnight.
Yes. Of course I don’t want to see needless death. But they don’t have a country either. Freedom is worth more than anything. The CCP has an iron grip on the Chinese people and are now taking over the world. I’d rather a few million of them perish than the whole human race
Sure, but using a guillotine has the appearance of being unjust, at least from an American perspective. It’s all about the optics