Fact Look: China’s $1 trillion trade surplus is built on an undervalued Yuan, not just on innovation

[paaparao]

control yuan rate, control imports, secret dealings to rich people,  deep espionage, secret penetration with supply chain to outsource manufacturing and tech. debt trap nations so that they won't obstruct imports from china into their countries, if nation does not listen then trap them into debt.

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Nilesh Shah says China’s $1 trillion trade surplus is built on an undervalued Yuan, not just on innovation and competitiveness

— Mr. Nilesh Shah, Managing Director of Kotak Mutual Fund, points out that China’s record trade surplus of over $1 trillion in just 11 months is not only about superior manufacturing, scale, or innovation.

— He argues that a systematically undervalued yuan is a crucial, under-discussed pillar of China’s export machine. By tightly managing its currency — rather than allowing a free float like other major economies — China keeps its goods cheaper in global markets, effectively giving itself a built-in price advantage.

— Mr. Shah contrasts China’s experience with countries like Japan, whose currency appreciated sharply when their export surpluses ballooned, eroding some of their competitiveness. In China’s case, he says, heavy-handed currency management and limited appreciation of the yuan have prevented that adjustment.

— This policy has helped sustain China’s dominance in global trade but, in his view, also distorts fair competition and contributes to trade imbalances worldwide.

 

[Thokkalee]

Aa surplus tho ne kadaa China US treasury bonds kontondi.. if there is no trade surplus, they won’t be able to buy as much debt that US is selling now 

if they let their currency value increase, they will get less dollars..