Yuan

Illustration picture showing U.S. dollar and China's yuan banknotes
A U.S. dollar banknote featuring American founding father Benjamin Franklin and a China’s yuan banknote featuring late Chinese chairman Mao Zedong are seen among U.S. and Chinese flags in this illustration picture taken May 20, 2019. REUTERS/Jason Lee/Illustration

May 25, 2019

BEIJING (Reuters) – The United States has called on China to curb the development of its state-owned enterprises (SOEs), a demand that China sees as an “invasion” on its economic sovereignty, Chinese state news agency Xinhua said on Saturday.

Trade tensions between Washington and Beijing escalated sharply earlier this month after the Trump administration accused China of having “reneged” on its previous promises to make structural changes to its economic practices.

Washington later slapped additional tariffs of up to 25% on $200 billion of Chinese goods, prompting Beijing to retaliate.

As trade talks stalled, both sides have appeared to be digging in. China has denied it had walked back on its promises but reiterated it would not make concessions to “matters of principles” to defend its core interests, although no full details were given.

“At the negotiating table, the U.S. government presented a number of arrogant demands to China, including restricting the development of state-owned enterprises,” Xinhua said in a commentary.

SOEs in China enjoy not only explicit subsidies but also hidden benefits such as implicit government guarantees for debts and lower interest for bank loans, analysts and trade groups say.

“Obviously, this is beyond the scope of trade negotiations and touches on China’s fundamental economic system,” Xinhua said.

“This shows that behind the United States’ trade war against China, it is trying to invade China’s economic sovereignty and force China to damage its core interests.”

The commentary added the United States has made unfounded accusations including that Beijing had forced technology transfers from foreign firms operating in China, saying this is all evidence that the U.S side is “forcing China to change its development path.”

(Reporting by Yawen Chen and Ryan Woo; Editing by Frances Kerry)

Source: OANN

Illustration photo of a China yuan note
A China yuan note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration

May 25, 2019

BEIJING (Reuters) – China’s banking and insurance regulator on Saturday said it did not expect a persistent decline in the yuan and warned speculative short sellers they would suffer “heavy losses” if they bet against the currency.

Xiao Yuanqi, the spokesman for the China Banking and Insurance Regulatory Commission (CBIRC), also said Beijing must look out for hot money moving in and out of the country, as well as large amounts of capital flowing into the frothy real estate market.

The yuan has lost more than 2.5% against the dollar since the festering China-U.S. trade dispute intensified earlier this month. It is now less than 0.1 yuan away from the 7-per-dollar level authorities have in the past indicated as a floor.

Xiao was speaking on behalf of Guo Shuqing, CBIRC’s chairman, at a finance forum in Beijing.

(Reporting by Cheng Leng and Ryan Woo; Writing by Yawen Chen; Editing by Sam Holmes)

Source: OANN

Illustration photo of a China yuan note
A China yuan note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration

May 25, 2019

BEIJING (Reuters) – China’s banking and insurance regulator on Saturday said it did not expect a persistent decline in the yuan and warned speculative short sellers they would suffer “heavy losses” if they bet against the currency.

Xiao Yuanqi, the spokesman for the China Banking and Insurance Regulatory Commission (CBIRC), also said Beijing must look out for hot money moving in and out of the country, as well as large amounts of capital flowing into the frothy real estate market.

The yuan has lost more than 2.5% against the dollar since the festering China-U.S. trade dispute intensified earlier this month. It is now less than 0.1 yuan away from the 7-per-dollar level authorities have in the past indicated as a floor.

Xiao was speaking on behalf of Guo Shuqing, CBIRC’s chairman, at a finance forum in Beijing.

(Reporting by Cheng Leng and Ryan Woo; Writing by Yawen Chen; Editing by Sam Holmes)

Source: OANN

Illustration photo of a China yuan note
A China yuan note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration

May 25, 2019

BEIJING (Reuters) – China’s banking and insurance regulator on Saturday said it did not expect a persistent decline in the yuan and warned speculative short sellers they would suffer “heavy losses” if they bet against the currency.

Xiao Yuanqi, the spokesman for the China Banking and Insurance Regulatory Commission (CBIRC), also said Beijing must look out for hot money moving in and out of the country, as well as large amounts of capital flowing into the frothy real estate market.

The yuan has lost more than 2.5% against the dollar since the festering China-U.S. trade dispute intensified earlier this month. It is now less than 0.1 yuan away from the 7-per-dollar level authorities have in the past indicated as a floor.

Xiao was speaking on behalf of Guo Shuqing, CBIRC’s chairman, at a finance forum in Beijing.

(Reporting by Cheng Leng and Ryan Woo; Writing by Yawen Chen; Editing by Sam Holmes)

Source: OANN

Men work on a production line manufacturing robotic arms at a factory in Huzhou, Zhejiang
FILE PHOTO: Men work on a production line manufacturing robotic arms at a factory in Huzhou, Zhejiang province, China January 8, 2019. REUTERS/Stringer .

May 24, 2019

BEIJING (Reuters) – Premier Li Keqiang said on Friday China aimed to keep value-added taxes for the manufacturing industry at low levels and encourage companies to innovate, in comments coming at a time of a bitter trade dispute with the United States.

Despite a good start in the first quarter, rising external challenges may still destabilize the Chinese economy, the second largest in the world, Li said in a statement on a government website.

While addressing a tax symposium, Li said although cuts in taxes and fees would reduce fiscal revenue, they would boost companies’ investment and confidence, which would in turn create employment and maintain sustainable economic growth.

“Local governments have adequate conditions to overcome difficulties and strike a balance between tax breaks and fiscal balances,” Li said.

Earlier this year, Li said China would cut taxes and fees for companies by nearly 2 trillion yuan ($290 billion) this year to boost slowing economic growth.

On Friday he said China’s economy had been resilient so far and that ample policy tools were available for macroeconomic adjustments.

(Reporting by Min Zhang in Beijing and Lee Chyen Yee in Singapore; Editing by Kevin Liffey)

Source: OANN

Men work on a production line manufacturing robotic arms at a factory in Huzhou, Zhejiang
FILE PHOTO: Men work on a production line manufacturing robotic arms at a factory in Huzhou, Zhejiang province, China January 8, 2019. REUTERS/Stringer .

May 24, 2019

BEIJING (Reuters) – Premier Li Keqiang said on Friday China aimed to keep value-added taxes for the manufacturing industry at low levels and encourage companies to innovate, in comments coming at a time of a bitter trade dispute with the United States.

Despite a good start in the first quarter, rising external challenges may still destabilize the Chinese economy, the second largest in the world, Li said in a statement on a government website.

While addressing a tax symposium, Li said although cuts in taxes and fees would reduce fiscal revenue, they would boost companies’ investment and confidence, which would in turn create employment and maintain sustainable economic growth.

“Local governments have adequate conditions to overcome difficulties and strike a balance between tax breaks and fiscal balances,” Li said.

Earlier this year, Li said China would cut taxes and fees for companies by nearly 2 trillion yuan ($290 billion) this year to boost slowing economic growth.

On Friday he said China’s economy had been resilient so far and that ample policy tools were available for macroeconomic adjustments.

(Reporting by Min Zhang in Beijing and Lee Chyen Yee in Singapore; Editing by Kevin Liffey)

Source: OANN

Starting in September, residents of Xi’an, located in China’s northwest Shaanxi Province, will receive negative social credit points if they refuse to observe local garbage sorting regulations, according to the CCP-friendly Global Times

The Xi’an government requires its residents to sort their waste into at least four categories – recyclable, hazardous waste, kitchen and other waste. Those who refuse to fulfill the obligation will be recorded under the personal credit system or will be fined up to 200 yuan ($28). –Global Times

“Residents are forbidden from mixing industrial solid waste, construction waste, medical waste and animal carcasses in household garbage. Each residential area should have at least one “recyclable” and one “hazardous waste” collection container, the regulation says.”

China’s social credit system is a technological behemoth of oppression – used to regulate public behavior with the goal of punishing people into compliance. People with great social credit will get “green channel” benefits while those who violate laws will be punished with restrictions and penalties.

Hangzhou, the capital city of China’s Zhejiang province, rolled out its social credit system earlier last year, rewarding “pro-social behaviors” such as blood donations, healthy lifestyles, and volunteer work while punishing those who violate traffic laws, smoke and drink, and speak poorly about government.

According to a February report, Chinese officials collected 14.21 million pieces of information of “untrustworthy conduct” by both business and individuals – including failure to repay loans, illegal fund collection, false and misleading advertising, swindling customers, and – for individuals, acts such as taking reserved seats on trains or causing trouble in hospitals, SCMP reports.

Meanwhile, around 17.46 million people who are “discredited” were prevented from buying plane tickets, while 5.47 million were disallowed from purchasing tickets to China’s high-speed train system.

A Canadian court has tried to stop Alex Jones from focusing on a trans child case which has quickly turned into a free speech battle. The case involves a father who opposed hormone therapy given to his child, who’s under 18, to help “transition” from female to male. This put him at odds with the child’s mother and psychologists who supported the treatments, culminating into a legal battle over parental rights.

Tracking of individual behavior in China, meanwhile, has become more accessible to the government with apps such as Tencent’s WeChat and And Financial’s Alipay – a central point for making payments, obtaining loans and organizing transport. These accounts are linked to mobile phone numbers, which in turn require government IDs.

Other technologies, including social media, facial recognition, smartphones, artificial intelligence and smart cameras will play a critical role in this Orwellian strategy for social compliance.

In the next few years, every action of a citizen will leave a permanent digital fingerprint that the government will either assign a good or bad score based on how they view the action.

And now, if residents of Xi’an fail to properly sort their trash, they will be docked social credit points or fined.

Source: InfoWars

FILE PHOTO: Illustration photo of a China yuan note
FILE PHOTO: A China yuan note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration/File Photo

May 24, 2019

By Winni Zhou and John Ruwitch

SHANGHAI (Reuters) – As China’s yuan slips to historically weak levels against the dollar, the central bank’s atypical light touch is spurring speculation that policymakers want to be more judicious in their intervention and have no specific target for the currency.

The yuan has lost more than 2.5% against the dollar since the festering China-U.S. trade dispute took a turn for the worse with tariff increases early this month. It is now less than 0.1 yuan away from the 7-per-dollar level authorities have in the past indicated as a floor.

A weakening yuan risks sparking outflows, a major concern for policymakers keen to retain investor confidence in a slowing economy and acrimonious trade war with the United States.

But the People’s Bank of China (PBOC) has done little to keep the yuan in check, beyond issuing yuan-denominated bills in Hong Kong and setting the managed currency’s daily mid-point consistently stronger than market expectations.

“My sense is that 7 is no longer so critical as in 2016. Policymakers are more confident,” said Tommy Xie, head of Greater China research at OCBC Bank in Singapore. “It also depends on the cost of defending 7.”

In 2015, a one-off 2% yuan devaluation fueled depreciation expectations, and Beijing burned through about $1 trillion of foreign exchange reserves to fight back.

In 2018, to hold the currency steady, the PBOC raised the cost of shorting the yuan by hiking reserve requirements on forwards. State-owned banks also used swaps and sold dollars to prop up the local unit.

Despite the trade war, it was not until this week that senior central bank officials launched a verbal campaign to remind the market that China can keep the yuan “basically stable” and draw on a toolbox of policies to manage fluctuations.

“Nothing has gone wrong, and (we) will not allow anything to go wrong,” Liu Guoqiang, PBOC vice governor, told the Financial News, a newspaper run by the central bank.

The PBOC did not respond immediately to faxed questions from Reuters about its policy and tactics relating to yuan levels.

(GRAPHIC: China’s falling yuan approaches 7/dollar – https://tmsnrt.rs/2W6Aoqb)

SUBTLE MESSAGE

To yuan watchers, the central bank’s perfunctory actions and messaging suggest a higher degree of comfort with a weaker yuan, while the currency’s stability against a basket of trade-weighted currencies is evidence it is not encouraging excess depreciation.

“The authorities are providing only the support needed to cap yuan weakness, rather than trying to strengthen the currency significantly,” Lemon Zhang, a strategist at Standard Chartered Bank wrote in a note.

A weaker yuan would theoretically help exporters, many of whom are feeling the pinch of U.S. tariffs on billions of dollars worth of made-in-China goods.

BofAML analysts Claudio Piron and Ronald Man reckon China will limit the yuan’s weakness in the run-up to a G20 summit at the end of June, when U.S. President Donald Trump and his Chinese counterpart Xi Jinping might meet.

If that meeting fails to produce a breakthrough easing trade tensions, “it is clear that China has the capacity and need for yuan depreciation to dollar/yuan 7.13. Fiscal stimulus and monetary easing would be required to support China’s economy,” they said.

But analysts suspect the PBOC’s strategy is not just about targeting yuan levels but also involves managing its currency reserves and a growing international role for the yuan. Those explain the central bank’s reluctance to reduce its dollar reserves too quickly or drive up interest rates in the offshore yuan market in order to make it expensive to short-sell the currency.

“If the central bank chooses to intervene directly in the market, a decline in the reserves to $2.9 trillion from $3 trillion would trigger greater shock to market confidence,” said Raymond Yeung, ANZ’S chief Greater China economist in Hong Kong.

Yeung says the PBOC “is unwilling to see a huge gap between onshore and offshore yuan as that would affect international institutions’ judgment of whether the yuan is capable as a reserve currency”.

The offshore yuan this week has been relatively weaker than the onshore one, but the PBOC’s sale of its debt in Hong Kong, intended to drain offshore yuan supplies, has been small scale.

As the central bank juggles multiple objectives, its injections of cash onshore, aimed at spurring lending in a slowing economy, have also been modest, in part to guard the exchange rate.

(Editing by Vidya Ranganathan and Richard Borsuk)

Source: OANN

An aerial photo shows Boeing 737 MAX airplanes parked on the tarmac at the Boeing Factory in Renton
FILE PHOTO: An aerial photo shows Boeing 737 MAX airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, U.S. March 21, 2019. REUTERS/Lindsey Wasson

May 24, 2019

BEIJING (Reuters) – The China Air Transport Association (CATA) on Friday said it expects losses at Chinese airlines caused by the grounding of Boeing Co’s 737 MAX aircraft to be around 4 billion yuan ($579.32 million) by the end of June.

CATA in a statement on its website said it hopes Boeing will attach great importance to compensation requests made by Chinese airlines.

(Reporting by Stella Qiu and Beijing Monitoring Desk; Editing by Christopher Cushing)

Source: OANN

Russia once again added to its growing gold reserves in April, buying another 15.55 tons of the yellow metal. According to a press release from the Central Bank of Russia, it now holds 2,183.46 tons of gold.

Russia has expanded its gold holdings by 71.53 tons through the first four months of 2019. Russian gold reserves increased 274.3 tons in 2018, marking the fourth consecutive year of plus-200 ton growth. Meanwhile, the Russians sold off nearly all of its US Treasury holdings. According to Bank of America analysts,  the amount of US dollars in Russian reserves fell from 46% to 22% in 2018.

In an appearance on RT, Peter Schiff said he thinks the Russians are preparing for an impending dollar crisis.

As Peter explained, the world has been on a dollar standard ever since the US led the world off the gold standard.

“That was fine when the dollar was backed by gold, but now the dollar is backed by nothing. So, if you’re backing your currency with a currency that’s backed by nothing, well, then your currency is backed by nothing.”

Peter said this wasn’t a problem when people perceived value in the dollar, but he thinks that’s going to change.

“I think the next recession when the Fed goes back to zero and when we launch QE4, I think the dollar’s role as a reserve currency is going to be questioned, and central banks need an alternative. And the only viable alternative to back up their own currency is real money, which is gold.”

Peter also talked about the fact that the US uses the dollar as a weapon.

“Other countries don’t like this, and to the extent that they can move away from the dollar, well then they kill two birds with one stone. And one way of doing that is to increase their gold reserves now while gold is still cheap. Because when the dollar really starts to tank, the price of gold is going to soar. Russia, right now, obviously wants to buy as much gold as it can while the price is still relatively cheap. That allows it to build up a bigger hoard of gold to replace the diminished value that the dollar is going to play as a reserve currency.”

(Photo by Andrzej Barabasz / Wikimedia Commons)

China has also been buying gold. Peter said this is one way for the Chinese to gain leverage in the trade war. They can strengthen the yuan by selling dollarsand buying gold.

“That would help increase the value of the yuan and that would help increase the purchasing power of their own citizens while really dealing a fatal blow to the dollar and the US economy at the same time.”

The RT anchor asked if it was really possible for other countries to actually ditch the US dollar. Peter said it’s not only possible, it’s inevitable.

“Ultimately, the US won’t have any leverage at all … This [the dollar as the reserve currency] was an exorbitant privilege that the US has enjoyed for decades, but it has abused that privilege dramatically, even more so recently with the sanctions. So, I think that privilege is going to be lost and with it will go the artificially high standard of living that came along with it in the United States.”

Alex Jones explains how MSM hid the real march of globalism until after Hillary lost the election.

Source: InfoWars


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