> Arguably, China is subsidizing everything with a low currency
Not really. "Subsidizing everything" is an oxymoron, if you subsidize some production it must be at the expense of other production that is providing the subsidies.
> It may cancel out (or maybe more than cancel out) those tariffs.
The opposite is true, tariffs reduce demand for Chinese products and thus for Chinese currency, which leads to lower yuan.
They subsidize manufacturing of certain specific industries, EV cars being one, at the cost of domestic consumption. Basically they steal Chinese people's savings and use it to give the rest of the world cheap cars.
PearlRiver|1 month ago
Glass stone houses etc etc.
bigbadfeline|1 month ago
Not really. "Subsidizing everything" is an oxymoron, if you subsidize some production it must be at the expense of other production that is providing the subsidies.
> It may cancel out (or maybe more than cancel out) those tariffs.
The opposite is true, tariffs reduce demand for Chinese products and thus for Chinese currency, which leads to lower yuan.
If you want higher yuan, remove the tariffs.
qcnguy|1 month ago