Why the Chinese Worries Aren’t Over

The currency has dropped against the US dollar, masking the underlying problems in the economy

A man looks at currency information posted on the window of a bank in Beijing on July 20, 2018. Wang Zhao/AFP/Getty Images

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.