Chinese President Xi Jinping and Foreign Minister Wang Yi. (Photo : Getty Images)
President Donald Trump has been accusing China of currency manipulation as early as his campaign days and will most likely bring up the issue at their meeting in Florida set this week.
During his campaign trail, Trump said, "We can't continue to allow China to rape our country and that is what they're doing. It's the greatest theft in the history of the world."
However, experts contend that the East Asian economy has been putting stops to prevent the currency from falling behind the dollar and preventing capital flight.
This year, the renminbi gained against the dollar. The Chinese currency was once known to be in the backseat compared to other Asian currencies.
According to Shen Jianguang, chief economist at Mizuho Securities Asia, the Chinese government's move to open up the economy to foreign investments was a big step in making the yuan stronger against the dollar.
The currency was more stable when the government opened up the domestic bond market and the fund management sector to international banks and financial institutions.
Shen also believes that since a lot of friction is anticipated during the meeting, China will have to take the lead in the proper framing of the situation, especially on the subject of China's trade surplus in the U.S.
"We think that the compromise could take the form of Chinese investments in the U.S. creating jobs--this is already underway and more about framing," according to the expert.
There is also the potential of China to open up more sectors for job creation in the U.S. other than technology firms.
The two countries are expected to create a major shift as Chinese imports to the U.S. have already fallen a great deal. American exports have increased significantly based on recent reports from the Commerce Department.
