China's Trump Card

As the trade war between the US and China escalates, with the US continuing to raise new tariffs on Chinese goods and China hitting back in kind, there seems to be no end in sight to the economic battle. The World Economy in Digital Times provides an in-depth discussion on this import tit-for-tat battle and sheds light on the various underlying issues whose scope is beyond the normal trade negotiations. On the surface, the economic dispute seems to have been brought about by globalization and protectionism. However, Raymond Yeung argues that the deeper reason behind this is the currency misalignment and the current global trade arrangement.

Highlights of the book include:

The need for global policymakers to sit down and construct a new monetary arrangement in response to the global imbalance. China's "de-dollarisation" or diversification of its offshore portfolios to include alternative investments If China initiates a convertible standard superior to the fiat money regime, not only will it gain a market following, but it will also boost the global acceptance of the RMB. Facebook's plan to create a blockchain-based digital currency, Libra, could potentially be both a yuan competitor and a yuan enhancer. Blockchain offers a fungible asset class option for China's reserves investment and which can be relatively independent of political considerations. China being a front runner of the digital economy

Pe masura ce razboiul comercial dintre SUA si China se intensifica, SUA continuand sa creasca noi tarife asupra marfurilor chineze si China sa dea inapoi in natura, se pare ca nu exista un sfarsit la vedere pentru batalia economica. The World Economy in Digital Times ofera o discutie aprofundata asupra acestei batalii de import-tit-for-tat si arunca lumina asupra diferitelor probleme de baza al caror domeniu de aplicare este dincolo de negocierile comerciale normale.