China rules out competitive currency devaluations

An office building is reflected on a new 100 Yuan note on display outside a bank in Beijing, in this Jan. 11, 2016 file photo. (AP)
Updated 07 May 2017
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China rules out competitive currency devaluations

BEIJING: China has no intention and no need to carry out competitive currency devaluations, the head of the country’s foreign exchange regulator said.
In a weekend piece in the Chinese magazine Modern Bankers, Pan Gongsheng said the People’s Bank of China’s (PBoC) supplying of liquidity to the market was to prevent excessive fluctuations in the exchange rate and prevent a “herd effect,” to maintain market stability.
“China has no intention of raising competitiveness via currency devaluation. It does not have this wish, and it also does not have this need,” Pan, who runs China’s State Administration of Foreign Exchange (SAFE), wrote.
China was working hard to raise the exchange rate’s flexibility and to maintain its stability, he added.
This was good for the international community and would avoid negative spillover effects from a disorderly exchange rate adjustment or competitive devaluations by other currencies, Pan wrote.
Pan is also a vice governor of the PBoC.
China’s yuan is up just around 0.6 percent so far this year, having lost nearly 7 percent in 2016. In November, the yuan hit an eight-year low following Donald Trump’s shock election as US president.
In a Reuters poll last week, the yuan was forecast to weaken to 7.07 per dollar in a year.
Despite harsh rhetoric about China on the campaign trail, Trump has recently had warm words for his Chinese counterpart Xi Jinping, praising him for trying to rein in nuclear-armed North Korea.
Trump has also backtracked on his pledges as a candidate to label China a “currency manipulator” and impose steep tariffs on Chinese imports.
Speaking at a forum on Sunday organized by Hong Kong-based Phoenix Television, Chinese Vice Finance Minister Zhu Guangyao said that trade disputes between China and the US should be resolved via “cooperative methods.”
China and the US need to strengthen fiscal and monetary policy coordination, he added, according to a report on the broadcaster’s website.
China will also pay close attention to Trump’s tax cut plan, Zhu said, without elaborating.
Last month, Trump unveiled a one-page plan proposing deep US tax cuts that would make the federal deficit balloon if enacted.


Samsung delays Galaxy Fold media events in China

Updated 22 April 2019
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Samsung delays Galaxy Fold media events in China

  • Instead of plaudits ahead of the phone’s launch on April 26 in the US, Samsung has instead received brickbats
  • The hashtag #foldgate trended on Twitter because of the smartphone issues

SEOUL: Smartphone maker Samsung postponed media events for its Galaxy Fold planned for this week in Hong Kong and Shanghai, a company official said, days after reviewers of the foldable handset reported defective samples.
The official did not elaborate on reasons or rescheduling.
Instead of plaudits ahead of the phone’s launch on April 26 in the United States, the South Korean conglomerate has been blighted by technology journalists reporting breaks, bulges and blinking screens after using their samples for as little as a day.
Samsung said it received “a few” reports of damage to the displays of samples of the $1,980 handset, raising the specter of the combustible Galaxy Note 7 three years ago which the firm ultimately pulled from shelves at massive cost.
The reviewers’ reports of broken screens went viral online and prompted the creation of hashtag #foldgate on Twitter.
Samsung has hailed the folding design as the future in a field that has seen few surprises since Apple’s iPhone in 2007. Chinese rival Huawei Technologies has also announced a folding handset, the Mate X.
The Samsung official on Monday said it had no change to its previously announced release date in the United States.
It plans to begin South Korean and European sales in May, and Chinese sales from an undisclosed date.