China ‘has tools to handle trade war’ Central bank
“We have plenty of room in interest rates, we have plenty of room in required reserve ratio rate, and also for the fiscal, monetary policy toolkit, I think the room for adjustment is tremendous,” Yi said on Bloomberg TV.
China said on June 6 that it would soon release detailed information about a planned blacklist of “unreliable” foreign companies and individuals, that analysts expect will target firms cutting off supplies to Chinese tech giant Huawei.
Last month the U.S. Commerce Department placed Huawei and dozens of its affiliates on an “entity list” on grounds of national security, curbing its access to crucial U.S.-made components and software, though a 90-day reprieve was later issued.
Yi has participated in several rounds of the trade negotiations with Washington and is scheduled to meet with U.S. Treasury Secretary Steven Mnuchin this weekend during the G-20 gathering of financial policymakers in Japan.
The central bank has long prevented the yuan from falling below seven, but Yi hinted the bank may no longer defend the currency at that level.
“I don’t think along this mathematical scale any number is more important [than] the other number,” he said.