The US-China trade war seems unstoppable in fact; it has taken a dangerous turn with China’s move on its currency. China has allowed letting its currency go down, and it has reached the lowest level in more than a decade. When this trade war started, no one thought that China would do something like that, but now the trade war has been turned into a currency war.
Now when China’s currency has reached on a lower level, the country’s enterprises have stopped making a new purchase from the American companies as the US things have become more costly now for China.
The US acknowledged this move of China as currency manipulation and the allegation of US administration on China of being a currency manipulator has made the things worse for this ongoing trade war.
US President Donald Trump twitted on Tuesday that the US is in a very strong economic position in this currency trade war. The President also claimed that the interest rates and opportunities in the US are attracting the “massive amounts of money from China.”
Donald Trump tweeted from his official twitter handle, “Massive amounts of money from China and other parts of the world are pouring into the United States for reasons of safety, investment, and interest rates!” the president said on Twitter. “We are in a very strong position. Companies are also coming to the U.S. in big numbers. A beautiful thing to watch!”
Meanwhile, China has also responded on the allegations of being a currency manipulator. According to China, Monday’s fall that China’s market witnessed happened was a reflected pressure on the newly imposed exchange rate from the US.
According to the latest updates in the US, the stocks bounce back after the significant fall. This news will bring a smile on the faces of investors in the US market but still nothing is stable so far. According to a few reports, the ongoing trade war between China and the US could affect the fragile oil price and crush the oil price.