Comments by former PBOC adviser Li Yang
- US and China will act rationally
- Both will want to avoid a currency war
- If currencies become volatile, it will be a distaster
If there is going to be a spillover from a trade war, a currency war surely ranks at the top of the list. Though as highlighted before, it's much easier for China to approach that matter than it will be for the US.
Mnuchin's comments at the start of the year was a good example of the backlash that the US could suffer if they are to engage in any sort of pseudo-currency wars with China, or any nation for that matter.
