According to the American Iron and Steel Institute (AISI), China continues its unilateral moves of conducting the world market in order to support its own industries. The devaluation of the yuan is the latest example of such behavior, where Chinese government actively influences the competitiveness of Chinese companies by manipulating the value of the currency.
American Iron and Steel Institute - Thomas J. Gibson, American Iron and Steel Institute referred to the actions of the Chinese government American Iron and Steel Institute, and said:
"Today’s action is further illustration of the Chinese government’s active role in manipulating the value of its currency to promote Chinese exports. China has consistently intervened directly in foreign exchange markets to control the value of the yuan versus the U.S. dollar to make their exports more competitive and impose new barriers to imports."
The European steel industry, which faces the great difficulties in opposing record imports of steel and steel products from China, took another huge hit with devaluation of the yuan. According to Eurofer, this move will have very serious consequences on the competitiveness of European manufacturers. The European steel industry already has a big problem with profitability, and from slow awakening of the European steel market, China will have the biggest benefit. Comparring to 2014, only in the first five months of this year, imports from China increased by 49%!
The Chinese government decided to devalue the yuan after the strong slowdown of economic growth and price corrections in the domestic stock markets. China's central bank lowered the value of the yuan by 3% against the US dollar, which is the largest devaluation of the Chinese currency in the last twenty years. People's Bank of China released a statement that this move returned the real market value of the yuan, and it rejected allegations that they intend to devalue the currency by another 7%.