China’s foreign ministry has declared that the central government will not engage in “competitive devaluation” of the renminbi with the goal of propping up exports, as trade tensions with the United States further escalate.
At a routine press conference held on 23 July ministry spokesperson Geng Shuang (耿爽) said that the value of the renminbi was primarily determined by market supply and demand, and that the sound fundamentals of the Chinese economy are currently providing vigorous support to a stable exchange rate.
“China has no intention to use competitive monetary devaluation to spur exports,” said Geng. “This has been China’s consistent position.”
With regard to the Trump administration’s mooting of over USD$500 billion in tariffs on Chinese imports, Geng said that China is “unwilling to fight [a trade war],” but also “unafraid of fighting, and when necessary will have no choice but to fight.”
“China has the ability and the confidence to protect the interests of the Chinese people,” said Geng. “We implore the United States to remain calm, and use a rational attitude to handle and resolve relevant issues.”