In an interesting turn of events, Chinese authorities are proposing an unexpected way to prevent a trade war with the United States. According to the Wall Street Journal, China is considering investing in the US economy without devaluing the yuan. Beijing believes this approach could avoid a global trade war and return to the agreements made during Donald Trump's first term as president.
WSJ reports that Beijing is also ready for negotiations within the World Trade Organization. The government's plans include increased investment in segments of the US economy such as the production of batteries for electric vehicles.
In addition, China is willing to move away from the artificial devaluation of its currency, the yuan.
As previously reported, President Trump's announcement of tariffs on Mexico caused a significant drop in stocks of several Asian companies. Shares of Toyota, Honda, and Nissan fell by 5%, while South Korea's Kia lost more than 5%.
