Since declaring his candidacy for president, Donald Trump has made China the focal point of his campaign. One of the common statements he makes is that China has devalued its yuan renminbi so much that it’s impossible for the United States and American companies to compete. Although the People’s Bank of China (PBOC) recently eroded the yuan by two percent last month, the yuan has appreciated quite significantly over the past 10 years.
This chart below shows that the yuan has appreciated very much compared to the U.S. dollar since Sept. 2005. To say the Chinese government has devalued its currency so much to make competition non-existent is just a tad disingenuous.
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