Full Text:
Laurent Michelon Officiel
@LH_86_
Since yesterday, Western media outlets have been deliberately distorting Xi Jinping’s announcement on Saturday, digging up an old speech he gave in 2024, recently republished in @QiushiJournal magazine.
They are either pretending not to understand or are afraid to understand the significance of what he said.
The Chinese president simply listed the attributes necessary for a financial powerhouse such as #China: a robust economic foundation, leading economic and technological power, and a credible and widely used currency.
He merely publicly confirmed what has been happening in the markets for almost a year, namely an appreciation of the #RMB against the USD, which signals a fundamental change of direction in China: a move away from deflation through reflation, i.e., by ceasing to print #Yuan to maintain the 7:1 parity with the dollar, and thus allowing the yuan to appreciate against the dollar.
The artificially low yuan of the past eight years has favored exports. In this respect, it has enabled China to improve its industrial production chain to the point of becoming the world leader, to move upmarket towards high-tech products with high added value, and to gain sufficient market share worldwide to continue this momentum.
Today, Xi Jinping has basically announced that China needs a strong yuan. In a domestic context where the authorities have been announcing for almost two years that they want to make domestic consumption a second engine of growth (alongside exports), this means that China will import more, not only raw materials but also finished products.
This is good news for the Chinese, whose purchasing power is increasing, but also for exporters around the world, if they know how to position themselves.
Ultimately, this creates the conditions for an economic recovery for the whole world, with China at its center.
This is good news, which the Western media will hide for as long as possible, so that a revival in Western exports to China is not attributed to the latter.
The weekend articles, which are (deliberately?) off-topic in treating the RMB as a reserve currency, reveal a fear in the West of a strong RMB, as a replica of the strong yen of the 1980s.
