Domestic strength offsets US rate tinkering claims

The Chinese economy has changed over the past decades and now relies mostly on the domestic market for sustainable growth, which means there is no reason for China to manipulate exchange rates to cope with trade disputes, Chinese experts said on Tuesday.

The US unilateral and groundless labeling of China as a "currency manipulator" indicated the escalating Sino-US trade friction, but the Chinese economy's strong resilience, rooted in its huge domestic market and complete industrial sectors, will support it, they said at a seminar in Beijing.

"A fundamental change in the Chinese economy is that its growth is mainly driven by the domestic market nowadays. The Chinese economy ran smoothly during the first half of 2019 with the balance of international payments, checked financial risks, and a stable renminbi exchange rate," said Wen Bin, chief analyst at China Minsheng Bank.