USA and its allies are trying to pull another 'Plaza Accord' on China

The USA and its allies are trying to pull another 'Plaza Accord' on China, trying to force China to revalue the Yuan upwards to curb its exports. China is not going to play by USA and Western rules unlike Japan.

China does not have to play by USA and Western rules, unlike Japan that in 1985 had to depend largely on the USA and Europe for its exports. China is already moving away from the USA and Europe, focusing on expanding trade with the Global South. Why would China cut its nose to spite its face when it can continue to export cheap things to the Global South, leveraging on its currency that the USA and the West claims is too cheap. It is a bonus for the Global South for China to stick to the status quo, albeit a cheaper Yuan.

A cheaper Japanese Yen could have helped Japan actually, but Japan is no longer the kingpin in the export sector anymore, other than vehicles, which is also facing severe headwinds. The Plaza Accord actually made the Yen very expensive and that was the straw that broke the camel's back, with Japan unable to crawl back from the stroke of lightning that crippled its economy for decades. It was a sacrifice for the USA, just like the sacrifice of the hundreds of thousands of Japanese from the two nukes dropped on Japan earlier.


Anonymous