SINGAPORE (June 4): The on-off trade war between the US and China is on again. According to a statement from the White House on May 29, the US government “will impose a 25% tariff on US$50 billion ($67 billion) of goods imported from China containing industrially significant technology”. The list will be announced by June 15.

Over the past six weeks, the renminbi has weakened against the US dollar, from 6.269 on April 11 to 6.4197 on May 30.

But, almost unperturbed by the Trump administration’s bluster, and in stark contrast to the US president’s impetuousness, the Chinese government continues to internationalise the renminbi calmly, slowly and steadily. The Belt and Road Initiative, the qualified investor scheme, Shanghai-Hong Kong Stock Connect and the inclusion into the MSCI indices of China A-shares are all part of increasing efforts by the Chinese to open its capital account and internationalise the renminbi.

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