China has dumped US Treasuries for a 7th straight month as it defends the yuan against the dollar
Business InsiderAPR 3 2022
While the US Fed has worked diligently to deflate inflation by raising interest rates, Chinese authorities have prioritized fighting recession by trying to cut rates aggressively. The PRC needs to mimic American monetary policies if they want to have any hope of stopping the devaluation of the yuan and bringing back currency stability.
China's approach to this issue shouldn't be simply following the US and European blueprint for navigating financial turbulence. Stabilizing foreign exchange should be the highest priority for the Chinese government. There's too much rampant speculation in the currency market - the PRC rightly needs to protect its COVID-weary economy from unscrupulous gamblers.