China’s yuan fell for the first time in seven days after the central bank weakened the fixing by the most since July before U.S. jobs data that’s predicted to bolster the case for a reduction in Federal Reserve stimulus.
On the sultry evening of July 21, 2005, I was having dinner in an American restaurant in Shanghai favored by expats. Shortly after 7:00p.m., over the course of less than five minutes, my four dinner companions' phones buzzed with the same news: China’s central bank had begun to allow the currency to appreciate from its seven-year peg of 8.27 yuan to the U.S. dollar, to 8.11 yuan.
Complaints against China by the U.S., European Union and Mexico were bolstered by a World Trade Organization finding that the nation’s limits on raw-materials exports broke global rules and gave domestic companies an edge.
China’s investment environment for foreign companies is not worsening, despite “many allegations” to the contrary, Mei Xinyu, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said in a commentary in the China Daily today.
China, the world’s biggest supplier of rare earths, almost doubled its export quota for the second half from a year ago, a change the European Union said actually adds restrictions to overseas shipments.