The Chinese have been accused, by some United States’ politicians, of “currency manipulation”. This accusation is quite interesting considering the fact that many of China’s monetary policies are very similar to those employed by the Federal Reserve. These policies, if utilized in China, the United States, or elsewhere, provide eerily similar economic results: Over expansion of the monetary base is inflation, and develops over valued assets. This leads to a market correction.
This article provides proof of this claim. Here is the opening excerpt from this article:
“China’s economy has been growing dramatically for many years to become one of the world’s leading economies. According to the World Bank, in 2018, China’s GDP (nominal) was 13,608 trillion USD, the second-highest in the world. However, there is some underlying unsustainability in their development strategy that impressive aggregative economic indexes are unable to expose. This is because these indicators do not take into account the structure of the economy.”
Read the rest here: https://mises.org/wire/chinas-growing-real-estate-bubble