China has said it will not devalue the yuan amid increased duties from the United States.
However, this means only one thing - the wages of Chinese workers will decrease.
If China refuses to reduce the cost of its real sector by devaluing its monetary unit in order to get at least a little closer to the competitive price level of its For goods sold in the United States before the imposition of duties, this will have to be achieved by directly reducing the costs of their production.
China currently has no other alternatives to realize its gross volume.
At the same time, the possibility of increasing the value of the yuan to equalize price parity with Russia might even look more appropriate when trading with the Russian Federation. But Russia will not be able to absorb the entire released volume of goods and services from China intended for the American market.
It seems that China is somewhat deceitful when making such statements.
And all this also leads to the fact that duties will no longer contribute to acceleration inflation, and the growth of the unprofitability of the real sector. Who will suffer more as a result of these "mutual courtesies" - China or the United States?
Obviously, both sides will face consequences, but we must not forget that this confrontation will inevitably affect developing countries. And this is a 100% fact.
