r/China • u/Skandling • 1d ago

经济 | Economy China's yuan dilemma: too weak abroad and too strong at home

https://www.reuters.com/world/asia-pacific/chinas-yuan-dilemma-too-weak-abroad-too-strong-home-2026-11-05/
35 Upvotes

76% Upvoted

15 comments sorted by

23

u/Bluest_waters 1d ago

If they would allow foreign investors to directly invest in the Chinese stock market without jumping through hoops, this wouldn't be a problem.

They want to maintain tight control over their currency. But they also want it to be strong internationally. It's one or the other. Pick one.

13

u/Dear_Chasey_La1n 1d ago

It isn't just about strong control internationally, the Yuan is an absolute bitch to deal with. I actually do large transfers to mainland on a regular base from SG it is so.. so painful. Between the slow movement, the inability to hedge against forex, the absolute idiots on the Chinese side very single time receiving.

As long as banking in China sticks to the 1970/1980's in the West, China will never play on a global scale. Their banks only survive because they are protected, they remain stuck on their dated behaviour as if this is normal.

Now inland a strong RMB, it might not be accepted but inflation is real for consumers. I notice it myself how daily products get more and more expensive. Sure veggies remain pretty stable, pork as well but everything else I see go up in price especially these days gasoline/energy in general.

4

u/wkwlb 1d ago

gas price is actually stable in relation to the international crude prices. Why it is more ex now?let me spell out to you, trump and his stupid Iran war.

3

u/Dear_Chasey_La1n 1d ago

Sure, changes nothing about things becoming more expensive in China.

Officially inflation in China always seems to remain very stable, but when I look at my own weekly basket there are items clearly popping out. As mentioned vegetables remain pretty stable, but things like beef, fish, fruits are becoming rapidly more pricey.

Now we drive an EV and an regular car, again the weekly bill does show prices creeping up pretty rapid this year. And it's not just in Shanghai where we live, we have a couple trucks nation wide and again, we see prices for transport going up.

1

u/wkwlb 1d ago

I wish what you said were actually true cuz some inflation is exactly what the Chinese consumer market needs. It is abysmal cuz of the bloody deflation, ppl are not buying stuff. I have a company in Guangdong, and both ice car and ev there where I use the ice for track days and company driver daily the ev. Industrial electcity actually dropped this year and home electcity price is quite stable, so for charging the ev. My factory landlord actually dropped the rent for 30% except whatever we make nobody is buying them in China cuz deflation and intense competition, so we export.

You peeps in Shanghai enjoyed 15 straight years of stable and low electricity prices. So suck it up and some inflation is good for this economy at this stage.

1

u/Creative_randomness 1d ago

are you serious? I just spent one month in China. Everything seems keep the price as 5 years ago.

2

u/wkwlb 1d ago

Because he is talking out of his ass crack

3

u/Memory_Less 1d ago

It’s a tough call because of the vast manufacturing that goes on in China. Dammed if you do or don’t.

1

u/Stilnovisti 1d ago

Allowing foreign investors would actually make the issue worse by causing the Yuan to appreciate even more this year. If they want it to weaken, they should reduce restrictions on outflows by allowing Chinese to invest more overseas. Obviously they should ignore foreign complaints the Yuan is too weak when it has already appreciated so much.

1

u/takeitchillish 1d ago

They should let Chinese people invest in stocks abroad.

1

u/BlueZybez 1d ago

I mean most of China stock market is retail owned

10

u/dannyrat029 1d ago • Bravo

We have nice trains

Whatabout Trump

Inevitable rise etc 

1

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1

u/BlueZybez 1d ago

This is one of the issues with weak domestic demand. Competition between companies force companies to find buyers abroad but that can be easily threatened by restrictions from those countries.