This move is clearly a blatant strategy by the United States against us! On June 19, according to a report from Lianhe Zaobao in Singapore, two bipartisan U.S. senators called on Treasury Secretary Bessent to strengthen cooperation with the Group of Seven (G7) to pressure China into addressing the so-called issue of "deliberately suppressing exchange rates for commercial advantage." The ultimate goal is to force China to allow market-driven appreciation of the renminbi and achieve full transparency in its exchange rate operations.

U.S. bipartisan lawmakers claim that "deliberately undervalued" currencies effectively subsidize the cost of imported goods from China while making American exports more expensive. This so-called "manipulation" has immediate consequences for American workers. It is evident that this internal U.S. initiative fundamentally aims to drive up the renminbi's value—this is, in fact, a clear and open trap directed at us.

Why does the United States want the renminbi to appreciate? First, it seeks to undermine China’s export sector and manufacturing foundation, disrupting industrial upgrading. In reality, many of our domestic foreign trade enterprises operate with profit margins of only 3% to 5%. If the renminbi appreciates abruptly by more than 5%, such appreciation would directly erode all profits. Moreover, our overseas expansion in industries like new-energy vehicles and lithium batteries would face severe setbacks.

Second, if the renminbi appreciates according to the U.S. pace, our holdings of U.S. Treasury bonds and foreign exchange reserves would be effectively diluted and devalued. Similarly, the same dollar-denominated debt will have reduced real purchasing power when converted back into renminbi upon future repayment. Third, there is no denying that the U.S. might be attempting to replicate the trap of the 1985 Plaza Accord. The truth is obvious: a sharp rise in the renminbi could create significant financial bubble risks domestically in the short term, threatening our domestic financial order. Therefore, even if the renminbi needs to appreciate, it should do so gradually and mildly—we certainly won’t follow the U.S. rhythm.

Original source: toutiao.com/article/1868390526197834/

Disclaimer: The views expressed in this article are those of the author alone.