The Republican frontrunner Donald Trump slammed China over the People’s Bank of China’s decision to devaluate its currency, saying “devalue means suck the blood out of the United States.”
“[China] continuously cuts their currency, they devalue their currency,” Trump addressed China devaluing its currency during a speech at the Lincoln Day dinner in Birch Run, Michigan; “They’ve been doing this for years—this isn’t just starting.”
Following a slump in China’s exports volume, Chinese authorities devalued the yuan by 1.9%—a move that could damage the equity market and the U.S. dollar. Technically, a weak currency makes the goods and services produced cheaper for customer with other currencies. Therefore it will boost the country’s exports, making them more attractive to international buyers by undercutting competitors.
“They make it absolutely impossible for the United States to compete and nobody does anything.” Trump explained how currency manipulation would impact the U.S economy.
“China has no respect for President Obama whatsoever,” Trump told his audience. “They think we’re run by a bunch of idiots, and what’s going on with China, it’s unbelievable.”
Mr. Trump pledged that if he was elected as the President of the United States, he and his administration would negotiate a much better deal with other countries. Although his campaign has not revealed any specific polices, he repeatedly said he is smart enough to cut better deals.
“I want free trade,” he said. “The problem with free trade: It only works when you have really smart leaders. […] When you have leaders who are incompetent, it’s a disaster.”