GPS News  
TRADE WARS
Trump win casts pall of uncertainty over Asia
By Ben Dooley
Beijing (AFP) Nov 11, 2016


China weakens yuan-dollar rate beyond landmark 6.8 level
Shanghai (AFP) Nov 11, 2016 - China weakened the yuan's reference rate to beyond 6.8 to the dollar for the first time in more than six years Friday as the greenback rebounded strongly, with analysts warning the unit could drop further.

The People's Bank of China set the value of the yuan -- also known as the renminbi -- at 6.8115 to the greenback, down 0.34 percent from Thursday's fixing, according to data from the Foreign Exchange Trade System.

The dollar surged on Thursday, rebounding strongly from steep losses earlier this week after Donald Trump -- whose surprise presidential win shocked the markets -- gave a reassuring speech to soothe worried investors.

Friday's yuan fix is the lowest since September 2010 and an analyst estimated it could still fall further.

"It has a lot further to go! If President Trump injects massive fiscal stimulus and protectionism then we will see a MUCH weaker CNY and CNH," Michael Every, head of Asia-Pacific financial markets research at Rabo Bank, said in a written response to AFP, referring to both the onshore and offshore yuan quotes.

"Question is, how long until we break through 7, and where is the final stop? I think below 8 over the medium term, all things being equal."

The onshore yuan closed at 6.8155 on Friday, down 0.34 percent from Thursday's close of 6.7925, according to the Foreign Exchange Trade System.

China only allows the yuan to rise or fall two percent on either side of the daily fix, one of the ways it maintains control over the currency.

In August of last year, Beijing suddenly devalued the yuan, causing investors to dump the unit in volumes not seen since 1994 and sparking an outflow of capital from China.

China new bank loans almost halve in October
Shanghai (AFP) Nov 11, 2016 - Chinese bank lending almost halved month-on-month in October, official data showed Friday, as Beijing moved to rein in credit risks but with national holidays also an issue.

New loans extended by banks fell to 651.3 billion yuan ($95.6 billion) last month, compared with 1.22 trillion yuan in September, said the People's Bank of China, the country's central bank.

Lending surged in August and September as the government injected credit into the economy to spur activity, but the rapid rise in borrowing sparked alarm and Beijing has tried to curb the expansion.

"Looking ahead, we expect broad credit to resume its slowdown slide in coming months, as Chinese policymakers continue to prioritise tackling credit risks over boosting economic activity, which has held up well recently," Julian Evans-Pritchard of Capital Economics said in a note.

Analysts with ANZ bank also pointed to seasonal factors, as "banks usually slow their lending activities" in the fourth quarter as they approach their annual lending quotas.

The first week of October is also a national holiday in China.

China's economy showed signs of stabilising in October, with manufacturing data surging to a more than two-year high.

The producer price index also rose 1.2 percent year-on-year, after ending more than four years of falls in September. But exports fell for the seventh consecutive month.

China will release more economic indicators on Monday including industrial output and retail sales.

In a separate statement, the central bank said total social financing -- an alternative measure of credit in the real economy -- also plunged to 896.3 billion yuan from the 1.72 trillion yuan in September.

China's total debt hit 168.48 trillion yuan ($25 trillion) at the end of last year, equivalent to 249 percent of GDP, the China Academy of Social Sciences has estimated.

President-elect Donald Trump's vague and ambiguous foreign policy positions have cast a pall of uncertainty over whether American influence will decline in Asia, or if it will remain a force to be reckoned with, analysts say.

The real estate tycoon-turned-politician frequently savaged China on the campaign trail, even calling it America's "enemy" and pledging to stand up to a country he says views the US as a pushover.

But he has also indicated he is not interested in getting involved in far-off squabbles, saying America is sick of paying to defend allies like Japan and South Korea, even suggesting they should develop their own nuclear weapons.

"Trump could play the isolationist card and strike a deal with China to share regional influence," said Ashley Townshend of the United States Studies Centre at the University of Sydney.

"But he might equally decide to adopt a firm military stance on a country he thinks regards America as weak."

Trump has offered no clear prescriptions for the geopolitical issues that plague the relationship between Washington and Beijing, from Beijing's territorial claims in the South China Sea to North Korea's nuclear programme and the future of Taiwan.

"At this juncture, governments around the world cannot depend on any particular set of US policies, since Trump's sometimes flip foreign policy statements were often contradictory," said Graham Webster, a US-China expert at Yale Law School.

- Isolationist US? -

In recent months, despite President Barack Obama's foreign policy "pivot" to Asia the US has seen some of its regional allies begin to drift into Beijing's sphere of influence -- attracted by the economic appeal of the neighbourhood's biggest player.

Newly elected Philippines President Rodrigo Duterte cosied up to China during a trip to the country last month, and has threatened to sever military relations with Washington.

Malaysia, too, has seemingly begun to eye improving relations with the world's second-largest economy.

The prospect of an isolationist US under President Trump could quicken that trickle as the developing countries of Southeast Asia see Beijing -- with its fiscal largesse and huge consumer base -- as a better bet than a protectionist US.

Meanwhile, Trump's assertions that he will require Japan and South Korea to pay more for US defence assistance has led those countries, too, to worry about how the new presidency may reshape long-established relationships, said Rory Medcalf, head of the national security college at the Australian National University.

"Middle powers in Asia, like Australia, need to hedge against two problems now. One is Chinese power and the other is American unpredictability," he said.

But alongside the "America First" rhetoric of the campaign trail that seemed to signal a withdrawal from the world order, Trump has blustered that under him the US will once again be feared and respected by enemies and allies alike.

He has promised to increase US military strength -- boosting the navy to 350 ships -- and has spoken admiringly of the strongman politics of Russian President Vladimir Putin.

- 'Element of uncertainty' -

Just before the US election, Peter Navarro, who is said to be Trump's top China adviser, hinted at how the relationship with Beijing might change under the new president in an article on the website of Foreign Policy magazine.

The refocus on Asia under Obama has been a failure, he wrote.

The "weak pivot follow-through has invited Chinese aggression in the East and South China Seas", he said, adding that a Trump administration would address the problem, in part, by pursuing "a strategy of peace through strength".

In recent years Beijing has built a series of artificial islands capable of hosting military facilities in the South China Sea, an area stretching hundreds of kilometres (miles) from its shores, but which it claims as its own.

Littoral states have little capacity to resist themselves, but the US regards freedom of navigation in the strategically vital waters as a crucial issue and Washington has ordered periodic sail-pasts and fly-overs of disputed islands.

Beijing's official defence budget has seen annual double-digit expansions for most of the last two decades and it has the world's largest military at its command, with a second aircraft carrier under construction, although US forces remain more powerful.

Trump was an unconventional candidate, and his policy direction on the issues embroiling the US and China once he is sworn into office in January remains largely unknown.

"Trump has not expressed his position on the South China Sea problem," said Jia Qingguo, head of the Beijing University School of International Relations.

That and many other questions were so opaque, he said, that Beijing finds itself at a loss for how to proceed.

"Since Trump has been elected President, uncertainty in Sino-US relations has increased across the board," Jia said.

"I hope he will handle China-US relations in a pragmatic and rational way."


Comment on this article using your Disqus, Facebook, Google or Twitter login.


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


.


Related Links
Global Trade News






Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Previous Report
TRADE WARS
China producer prices rise for second straight month
Beijing (AFP) Nov 9, 2016
Price for goods at the factory gate rose in China for the second straight month in October, officials said Wednesday, in a sign of strengthening demand in the world's second-largest economy. The producer price index (PPI) rose 1.2 percent year-on-year in the month, according to the National Bureau of Statistics (NBS), adding it "rebounded obviously". In September, the index ended more th ... read more


TRADE WARS
Drought-hit Zimbabwe farmers look to science to save crops

Model predicts elimination of GMO crops would cause hike in greenhouse gas emissions

Forests, locals harmed in Mexico's avocado boom

How the chicken crossed the Red Sea

TRADE WARS
Semiconductor-free microelectronics are now possible, thanks to metamaterials

Chip maker Broadcom in $5.9 bn deal to buy Brocade

Special-purpose computer that may someday save us billions

Exploring defects in nanoscale devices for possible quantum computing applications

TRADE WARS
'Morphing' wing offers new twist on plane flight and manufacturing

Sweden orders new pilot helmets

Russia's UEC, China's SBW discuss joint gas turbine engine project

Boeing gets $478 million F-15 electronic warfare system contract

TRADE WARS
China auto sales growth falls back in October: group

VW's Audi hit with fresh emissions cheating lawsuit

Nissan aims for China launch of cheap electric car in 2 years

VW makes progress towards 3.0 l diesel settlement: judge

TRADE WARS
China producer prices rise for second straight month

Trump win casts pall of uncertainty over Asia

EU nears tougher rules on China dumping

Bashed on trade, Beijing may benefit from President Trump

TRADE WARS
Mangrove protection key to survival for Senegalese community

Morocco's oases fight back creeping desert sands

Database captures most extensive urban tree sizes, growth rates across United States

New warning over spread of ash dieback

TRADE WARS
Extreme weather warnings at UN climate meeting

Don't see ISRO's Bhuvan as competition: Google India

GRAPES-3 indicates a crack in Earth's magnetic shield

Study reveals how particles that seed clouds in the Amazon are produced

TRADE WARS
Light drives single-molecule nanoroadsters

Nanostructures made of pure gold

Shedding light on the formation of nanodroplets in aqueous

'Pressure-welding' nanotubes creates ultrastrong material









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.