The history of Yuan derived from the temporary currency used in China and Taiwan. Eventually, Yuan became the official currency of China communist regime issues Yuan to be used in the mainland and overseas, the People’s Bank of China carries out the monetary policy and also regulates the interest rate and inflation.
IMF approved Yuan joined the currencies as the US dollar, Euro into the world market and global monetary firms. Despite China currency is unstable and the valuation couldn’t match the true value, but many countries made the mistake in trade ties, swapping currency as Reserve Bank of Australia and Canada is the first country exchanged two way with Yuan. Nevertheless, in Australia, under the era of Labor government rules by Prime Minister Kevin Rudd who conspired to establish the Asia-Pacific Bloc, China would dominate and the bloc would use Yuan. If Kevin Rudd succeeded, China competes for currency Yuan with the US dollar and Euro. Therefore, Prime Minister Kevin Rudd didn’t convince Australia and the other countries.
The US dollar expects as the most credible currency in the world. Therefore, from China joined the free market, Yuan competes with the US dollar and the other currencies. The currency’s valuation depends on the national economy consists of the production, finance, labor market and the others.
Despite China developed the economy on stolen technology plus the Intellectual Properties from the Western. Nevertheless, China communist has not enough the capacity to involve the arms, space race with the US. The rapaciousness of the Chinese dream is over the finance while China becomes the most world’s debt is $USD 23.6 trillion, actually, the plan of one belt and one road aggravates the more financial problem. The war fight against the global economic terrorism launches by President Donald Trump that accelerates the difficulty for the den of thieves and the hub of counterfeit. The fair tariffs adjust on Steel, Aluminium and the goods export from China affected more than half-trillion US dollars. The Yuan currency has to lose the valuation and following the nations stored Yuan as Australia, European Union and somewhere else including IMF. The countries and monetary firms lost the valuation cause the meltdown of Yuan to dodge the critical mistake by shifting the loss comes from President Donald Trump who sparkles the war against the economic terrorism of China. But they couldn’t convince the people, actually, the global economy has been trouble since the 1990’s and continued until 2007.
In June 2018, Yuan lost more than 6% valuation, so China’s currency is uncertain, the consequences occur both domestic and abroad:
1-In the mainland:
– Chinese people panic, they could keep the US dollar and gold are better than keeping Yuan. Even storing the toilet paper is better than keeping Yuan while the valuation continues to plunge, it is the domestic disaster.
-China retaliates the US by imposing the tariffs on soybean, meat…therefore Chinese people favor the US foods than China product because they knew the socialism product is not safe, hygiene, contamination, poison and short life. So Chinese people must pay more the agricultural product imported from the US, the retaliation is vain
2-The the US market: China product adds more 25% taxes, the US consumers buy the US made than China when the price is not different.
The quantity of the US imposes new tariffs more than China responds, certainly, the US is upper hand in the war fighting against the global economic terrorism. In the mainland, Chinese people couldn’t trust their own products including the agricultural products, so the retaliation doesn’t affect, even facing the circumstance of a boomerang’s thrower hit back.
Chinese people have been suffered the inflation that causes the economy downed and Yuan loses the valuation. The war fighting against the global economic terrorism lingers as long as worsening, China will receive more damages. The goods increase the prices during Yuan shrinks valuation, so the storing the toilet paper is better than keeping Yuan in the bank or the monetary firms. Chinese people in the mainland, overseas and the banks recognize China’s currency is not stable, it is the credit’s disaster for the ruthless regime being downturned. The majority in China and the world have not trusted Yuan, China communist faces the difficulty when everyone doesn’t believe the currency, instead, the world, including Chinese people and almost communist party love the currency has a phrase” The God We Trust”./.