| It is an article of faith in some quarters that China manipulates its currency to gain an unfair advantage. China indeed does 'manipulate' its currency in the sense that it intervenes heavily in the foreign exchange markets. However, the objectives and effects are quite different from what those who accuse China of currency manipulation argue.
Donald Trump, the frontrunner for the Republican nomination, ventured into economics on the pages of the Wall Street Journal by accusing China of being a currency manipulator. More specifically, he argued that: Economists estimate that the yuan is undervalued anywhere from 15% to 40%. Through manipulation of the yuan, the Chinese government has been able to tip the trade balance in their direction by imposing a de facto tariff on all imported goods...............................................Full Article: Source
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