Economics
Wary China Eyes U.S. Tax Cut as Currency Risk and Reform Chance
- Commentators see pressure on balance of payments, currency
- China shouldn’t let own reform agenda be disturbed: Researcher
Invesco's Hooper on U.S. Tax Bill, Markets
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Chinese officials and commentators are greeting the news of the biggest U.S. tax overhaul in three decades with a mixture of concern over the potential market impact and a sense that opportunity to push further reforms at home has arrived.
A Senate vote early Saturday brings the U.S. close to a cut in the corporate tax rate to 20 percent from 35 percent and temporary tax reductions for most Americans. Such a sweeping change in the world’s largest economy may push up the dollar on the back of repatriating capital and faster economic growth, presenting downward pressure on the Chinese yuan, the currency of the world’s second-largest economy.