Central planning has only so much room for slight of hand tricks to keep up its sleeve. When the going gets tough, everyone goes home. For China, that means devaluing its currency, a complaint Trump has long lobbed against the trade giant.
Maintaining good relations with Apple and almost achieving the manufacturing capability long held by Samsung is quite the accomplishment for the Chinese. Good job. Everyone owes them a hand. China’s BOE company hopes to be able to start manufacturing the flexible, “organic” LED displays by 2020.
Devaluing currency as a response to trade tariffs from the US, however, is likely to make those tariffs higher, considering that devaluation of its own currency was one reason Trump argued for tariffs before his election. This, and turning to Africa, means that the international bite is felt. Silicon Valley also has its eyes on Africa, meaning that Apple and China may meet again in Africa, as well as Google. But, doing more of the same things that initiated tariffs is likely to cause more tariffs than tariff problems it alleviates.
China has a hard set of choices ahead and as those choices narrow, the tiger will feel more and more like its been backed against a corner. This path doesn’t endure entirely peacefully.
China May Be Moving Toward A Big One-Off Currency Devaluation | Forbes
China’s Luck on Yuan Devaluation Risks Fading on Trump Ire | Bloomberg
China Targets Apple With Push Into Advanced Smartphone Screens | WSJ
China looks to increase advanced manufacturing by supplying OLED displays to Apple | 9 to 5 Mac
Six ways China could retaliate in a trade war | BBC
Rising China Economic Strain Prompts Talk of Policy Rethink | Bloomberg
China weakens yuan by most in 2 years | Market Watch
Xi arrives for visit in Africa as US interest wanes | Taipei Times