sourcewww.vinssco.com
publisherVinmay
time2021/03/17
Whats the impacts to Chinese companies when America print 1.9 trillion dollars crazily?
For the American people, this is a good news right now. Americans with an annual income of less than US$75,000 can get US$1,400, and they can also receive US$300 a month in unemployment benefits. But over time, they probably will complain. They get more money, but the material is not enough. Then it will occur inflation.
Whats the impacts to Chinese domestic companies?
1.Exporting
It’s also a good news to the foreign trade companies in China. If prices in the United States rise sharply, the American will increase the demand for imports. Now other countries are not recovered from the covid-19 epidemic. Only China has resumed normal production.
2. Exchange rate trends
The RMB exchange rate is now maintained at around 6.4, and there is currently a trend of recovery. The release of the U.S. dollar will essentially accelerate the depreciation of the U.S. dollar.
In addition, the rising of the oil price will alleviate the pressure of the depreciation of the U.S. dollar. The oil price in all over the world is settled in U.S. dollars. When the demand increases, the U.S. dollar will be supported.
3. Raw materials
This huge wave of U.S. money will be bound to global inflation, and China will also face "imported inflation." With more currency and shortage of the raw materials such as copper, iron, aluminum, and plastics.The price of them will continue to rise. And the Chinese companies will have a big challenge again.
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