# GlobalSource Partners | Can China sustain RMB depreciation?

> A Michael Pettis analysis argues that Beijing may use renminbi depreciation as one of its few responses to US trade threats. The RMB has fallen about 4% against the dollar in two weeks. The report concludes that sustained depreciation would damage China's economy more than the US, so a prolonged slide is unlikely.

- Date: 2018-06-28 · published 2018-06-28T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/64733-globalsource-partners-can-china-sustain-rmb-depreciation
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

The view that China will limit yuan weakness suggests the currency may not keep eroding Chinese import purchasing power for US feed ingredients. This makes a sharp, lasting drop in the yuan less likely to drive further price pressure.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-08-23 | [CNY at a glance: Is the worst of China’s depreciation pressure over? \| ING THINK](https://feedsoft.ai/events/29028-cny-at-a-glance-is-the-worst-of-china-s-depreciation-pressure-over-ing-think.md) | -0.7% | -1.3% |
| USDCNY | 2023-09-11 | [China issues strong warning against bets on renminbi depreciation](https://feedsoft.ai/events/34332-china-issues-strong-warning-against-bets-on-renminbi-depreciation.md) | -0.9% | -0.6% |
| USDCNY | 2025-04-29 | [China ramps up global yuan push, seizing on retreating dollar \| Reuters](https://feedsoft.ai/events/25348-china-ramps-up-global-yuan-push-seizing-on-retreating-dollar-reuters.md) | -0.3% | -1.4% |
| USDCNY | 2019-10-22 | [Impact of US-China partial trade deal on Chinese yuan (RMB)](https://feedsoft.ai/events/56811-impact-of-us-china-partial-trade-deal-on-chinese-yuan-rmb.md) | -0.1% | -0.7% |
| USDCNY | 2021-04-19 | [Global Reflation Trade Gains New Momentum From China’s Yuan - Bloomberg](https://feedsoft.ai/events/47815-global-reflation-trade-gains-new-momentum-from-china-s-yuan-bloomberg.md) | -0.4% | -1.3% |

## Sources

- globalsourcepartners.com: https://www.globalsourcepartners.com/posts/can-china-sustain-rmb-depreciation/teaser

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.