China's Yuan Falls to 16-Month Low Amid Tariff Concerns

CNChina|

China's currency, the yuan, reached a new low of 7.3301 per US dollar on Monday, marking its weakest point since September 2023. The decline comes as investor anxiety grows over potential tariffs promised by President Donald Trump during his second term, which are expected to impact Chinese imports significantly.

Accompanying the yuan's drop, the CSI 300 blue-chip stock index also saw a decline, closing down 0.2% after experiencing its largest weekly losses in more than two years, plunging 5% the previous week. Concerns about an ongoing economic slowdown in China have intensified capital outflows and driven bond yields down, further destabilizing the stock market.

In response to the turmoil, stock exchanges in Shanghai and Shenzhen have reportedly urged large mutual funds to limit stock sales, aiming to stabilize the market. Additionally, the People’s Bank of China (PBOC) fixed the exchange rate against the dollar at 7.19, despite external pressures. Analysts suggest that fears around Trump’s tariffs, along with declining bond prices indicative of a deflationary pressure, are driving these market movements.

Although the Chinese government has implemented various economic stimulus packages, many experts believe these measures fall short of addressing key issues such as real estate instability and consumer confidence, contributing to an overall sense of uncertainty in the financial markets.

Weekly Newsletter

Loading...

More from China

China Escalates Trade Tensions with 84% Tariffs on US Goods

China announced on April 9, 2025, that it will impose an 84% tariff on all imported goods from the United States, a significant increase from the previous 34% rate. The new tariffs will go into effect at 12:01 am on April 10, in response to US President Donald Trump's recently announced 104% tariffs on Chinese goods. Officials from China’s Customs Tariff Commission described the measures as necessary to protect the nation's interests amid escalating trade tensions. In a news briefing, Chinese Foreign Ministry spokesperson Lin Jian criticized the US's approach, urging the Biden administration to return to dialogue and cooperation rather than employing "bullying" tactics. Furthermore, China added six US entities, including cybersecurity firms, to its “unreliable entity list,” a move the Ministry of Commerce stated was taken with caution to safeguard national security. Additionally, China has filed a lawsuit against the US with the World Trade Organization, claiming the tariffs violate international trade rules. This trade dispute marks the sharpest escalation since previous tariffs began, exacerbating economic strains between the two nations.
CNChina

Tragic Nursing Home Fire Claims 20 Lives in Northern China

A fire at a nursing home in Chengde, Hebei province, has resulted in the deaths of at least 20 individuals, according to state news agency Xinhua. The fire erupted around 9 PM on Tuesday, and the remaining residents have since been transferred to a nearby hospital for medical care. The exact number of people evacuated has not been disclosed. Authorities have dispatched experts to the site to conduct a thorough investigation into the cause of the blaze. This recent tragedy follows a similar incident in January, when a fire at a food market in Zhangjiakou, also located in Hebei, resulted in eight fatalities and left 15 others injured. These events have raised concerns regarding fire safety in public facilities across the region. The government and local officials have been under pressure to ensure adequate safety measures are in place to prevent such disasters in the future, especially in facilities housing vulnerable populations.
CNChina

Nurses Heroically Shield Newborns During China Earthquake Aftershock

Nurses at Jingcheng Hospital in Yunnan, China, were filmed protecting newborn babies during a 7.7 magnitude earthquake that originated in Myanmar on March 29, 2025. As tremors shook the building, two nurses can be seen desperately trying to stabilize cribs to prevent them from rolling away, demonstrating remarkable bravery in a chaotic situation. The earthquake has tragically claimed over 1,000 lives in Myanmar, with many injuries reported. Official sources indicated that Mandalay, the country’s second-largest city, experienced the highest number of casualties, particularly in regions closest to the epicenter. The disaster has resulted in significant structural damage, with buildings collapsing and crucial infrastructure, including bridges, being destroyed. Social media users expressed their admiration for the nurses’ quick responses, calling them "heroes" amidst the fear and uncertainty. Rescue workers continue to search for survivors in both Myanmar and Thailand, where a 30-story skyscraper has also collapsed, causing further challenges in recovery efforts.
CNChina
All China News ->