I have been warning for years that the greatest and final economic collapse in this century, would be China. Now that cracks in the great red dragon’s economy are widening, it’s time to prepare for the China’s Yuan crash and The Great Depression In China.
The new tariffs proposal by U.S president Donald Trump has intensified the trade wars between the two nation, but the chances of China cutting its trade surplus with the US in response to the new tariffs is absolutely nil. The 25% increase in trade tariffs proposed by Washington puts China in a debt crisis and cutting trade surplus would not be a suitable option to help the situation.
The imposition of new tariffs on low-value exports involving Asian value chains is seen as a strategy employed by the U.S to cut down on the trade of cheap imports rather than leveling offshoring. The 25% increase in trade tariffs is also a means of reducing the country’s account deficit which is currently lower than 6%. The effects of the increase in trade tariffs are already caused an economic crisis in China evidenced by the current exchange rate which is at 6.725 to the U.S dollar, the lowest rate this year.