First, it was the tariffs wars which saw commodities slapped with additional levies, eventually ramping up to all imports from China. Then the focus shifted to technology with US companies considering moving their production lines out of China, with Huawei and Chinese drone companies blacklisted. We now appear to have entered a new chapter focusing on currency wars.
The US claims that China is manipulating its currency to the detriment of other nations by letting the Yuan slide past the 7 to a dollar limit. However, while China may have been accused of currency manipulation in the past, the nation has simply been propping up the Yuan over the last few years and letting it fall was an acknowledgement of weakening exports for the nation rather than an act of malice. Nevertheless, the US Treasury department were quick to add China to the currency manipulation list. Whilst the move is largely symbolic, it gives President Trump the legitimacy to hike tariffs further.
Read what the team at FE consider to be significant over the current week.