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Why the Chinese Worries Aren’t Over

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Why the Chinese Worries Aren’t Over
A man looks at currency information posted on the window of a bank in Beijing on July 20, 2018. Wang Zhao/AFP/Getty Images
Daniel Lacalle
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I find it amusing to read some analysts stating that the Chinese government’s stealth yuan devaluation has offset the impact of tariffs.

A 10-percent tariff hurts a small part of the economy. However, a 10-percent devaluation hurts all Chinese citizens, equally and massively.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”
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