The world's current leaders in advanced manufacturing must prepare for growing competition and ensure that China’s industrial upgrade doesn’t come at their expense, the authors of a new MERICS Paper on China argue in an article for our partner publication The Diplomat.
US President-elect Donald Trump has continued branding China as a currency manipulator – accusing the country of keeping the yuan low to help Chinese exports and harming jobs in the US. But in fact China’s currently intervenes in the opposite direction to prevent a weakening of the yuan – supporting American jobs.
Donald Trump’s election as US president has increased expectations for China to act as a responsible global power. But Beijing is unlikely to fill these expectations, and China risks being harmed by the fallout of an erratic and possibly reckless US foreign policy.