How China’s Currency Could Help it Wether US-China trade war and Vietnamese currency suffers

China has an easy weapon it can use to try and foil President Trump’s tariffs

The value of China’s currency, the renminbi, has fallen over %7 against the US dollar since mid-April, an unusually large move. A lower renminbi makes China’s exports cheaper to foreign buyers, which is particularly helpful right now when Trump’s tariffs are making many Chinese goods more expensive in the US market. And since China’s government manages the value of its currency, the regression certainly has its blessing

Officials at the People’s Bank of China have long insisted that “China won’t weaponize the renminbi.” And yet, implicit in their promise not to manipulate the currency for strategic ends is their ability to do so if they so like

The Vietnamese government will have to decide either to decrease the value of Vietnamese dong more against the US dollar to support exports and avert cheaper Chinese goods to flood in the local market, or keep the dollar/dong exchange rate stable to avoid increased public debt and control inflation as the US-China trade war accelerates