SHOT: Trump: ‘We can’t continue to allow China to rape our country’
“We can’t continue to allow China to rape our country, and that’s what they’re doing,” Trump said during his second rally Sunday in Fort Wayne, Indiana, referring to China’s high number of exports relative to the U.S.
Trump has repeatedly accused China of manipulating its currency to make its exports more competitive on the global market and has claimed that China is “killing” the U.S. on trade.
CHASER: China, Trying to Bolster Currency, Taps Foreign Reserves.
Beijing has spent perhaps a trillion dollars since last year to keep the yuan strong as investors flee the country, and as the Chinese leadership pushes for the IMF to crown the yuan as a reserve currency later this year.
HANGOVER: Yuan drops against basket even as policy makers talk stability.
China’s central bank faces a delicate balancing act with the yuan. While weakening the currency bolsters economic growth by making exporters more competitive, declines in the exchange rate could also exacerbate capital flight and erode consumer confidence. More than $900 billion left China in 2015 as the yuan dropped 4.4 percent against the dollar, the biggest annual slide since 1994.
Central planning rarely works as advertised.