China is showing a degree of nervousness over the prospect of a Donald Trump presidency. Yesterday, they warned the US not to punish them for currency manipulation - an idea the Trump has been campaigning on. Essentially China manipulates its currency through devaluation, making their exports cheaper. Almost all capitalist economies do not control the exchange rate for their currencies, preferring to allow the market to set rates. But devaluing currency is almost always an emergency measure. China devalues to gain a competitive advantage - something that goes against the rules of international trade. Washington Free Beacon: Foreign Ministry spokeswoman Hua Chunying told reporters in Beijing that “we are following with interest the U.S. presidential election.” Hua was asked about China’s response to a possible Trump presidency and his announced plan to punish China for currency manipulation with a tax on Chinese goods. “Since it belongs to...(Read Full Post)