Reply to post: Re: I was watching...

Nobody in China wants Apple's eye-wateringly priced iPhones, sighs CEO Tim Cook

Charlie Clark Silver badge

Re: I was watching...

they did state that China's economy was slowing but because of the trade wars, they can't deploy their usual trick of devaluing their currency.

The Renminbi has for years been appreciating against other currencies. It has fallen back slightly against the dollar over the last 12 months but so have many other currencies. The argument has been that even though the currency has appreciated, it's still been too cheap, but this has been contested for some time now, especially with respect to capital inflows.

It does look like China is going to finally hit the economic buffers and isn't going to be left to cheat its way out this time.

No it doesn't. The economy is much less dependent upon exports than it used to be and is in any case getting better at finding new markets: such as India, for phones at least. It was already cutting capacity (especially in steel and coal) before talk of a trade war with America started but since then the Chinese government has cut taxes and started new projects, something for which it has far greater scope than the US government. It also doesn't really need to worry about an electorate. The same can't be said of the US and Trump must obtain approval from congress of any trade deals he negotiates.

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