China could inflict huge blow to Russia’s fragile economy

Russian officials have warned that China may devalue its currency as a retaliatory move following the recent tariffs imposed by Donald Trump.

Beijing is reportedly seriously considering devaluing the yuan—possibly by as much as 30%—to soften the impact of Washington’s increasingly aggressive trade policy. The U.S. has recently imposed tariffs of up to 245% on certain Chinese imports.

Kirill Tremasov, advisor to Elvira Nabiullina, governor of Russia’s central bank, stated that if China deliberately weakens its currency, it could flood the Russian market with significantly cheaper Chinese goods, posing a threat to local industries.

“If the U.S. and China take this confrontation too far, the result could be a weakening of the Chinese currency,” Tremasov said. “This would increase the competitiveness of Chinese goods in other markets, including ours.”

“We import a large share of goods from China. This could pose a risk to Russian manufacturers if there's a large influx of Chinese products into our economy,” he added.

(QG - Source: Newsweek — Picture : © Unsplash)