China chooses not to follow the U.S. Federal Reserve to raise its short-term rates, putting pressure on the yuan.

The Chinese government won’t devalue the yuan against the dollar, for reasons which may surprise both policymakers and mainstream economists.

In the past, the key challenge facing China was to stop importing “dark matter”: as one of the world’s largest net creditors, China needed to stop running an investment-income deficit. Today’s challenge is to avoid “matter annihilation”: China must prevent its net foreign assets from disappearing.

China is leaving nothing to chance during next week’s visit by U.S. President Donald Trump, and will likely fortify the value of the yuan - a regular targ

China is increasingly insisting that its oil imports be denominated in Chinese yuan instead of U.S. dollars. If successful, this could make the yuan into the globe’s second or third most important currency overnight. Given that China’s imports will soon dwarf those of the United States, it is perhaps just a matter of time until the more than a half century reign of the petrodollar comes to an end.

A look at the timeline for when the European Union’s financial centers acquired the infrastructure necessary to be considered as offshore hubs for the Chinese currency provides a new angle to consider how Beijing plans to internationalize its currency.

Investors discovered a taste for the dollar and commodities on Thursday as upbeat Chinese and U.S. economic news whetted appetite for riskier assets globally, e

The RMB’s fall against the dollar reflects the slowing of China’s debt-fueled economic growth and the accumulation of default risks. Chinese residents and companies are, not surprisingly, seeking new ways (legal and otherwise) to move money out of the country.

As President Trump and President Xi prepare to meet in the near future, the current environment makes it unrealistic to expect any breakthroughs in bilateral relations. The sheer complexity of US-China relations, widely differing viewpoints, and the unsettled policy approach by the new U.S. administration make the willingness to meet and talk already an advance.

Last month, China commemorated the 20th anniversary of the death of Deng Xiaoping, the chief architect of the economic reform and opening up that catapulted the country to the top rungs of the global economic ladder. The anniversary comes at a time when economic openness is under threat, as the United States is now being led by a president who believes that the way to “make America great again” is to close it off from the world.