Why devaluation of currency a big step toward economic growth.

[amishmanish]

China sucks, go away CCP shill

China devaluates its currency simply because they want to keep their products' price low (cheap) thus remain competitive, yes they can do that since they have cheap sweatshops. But artificially changing anything will affect economic efficiency. They will need to import at some point, also pay its foreign debt. In the end, foreign countries will react, and everything will come back to the previous state (equilibrium). Any government intervention only useful in the short run.

Good to know that someone else is also seeing this pattern of CCP shills and propagandists on the forum. The communists always have this agenda of "image management" rather than letting a free society and a free press come to the conclusion about the performance and shortcomings of a government.

I often see this same behavior on Twitter. The Chinese handlers try really hard to give off the honesty vibe in their interactions, (like this one that is posting about devaluation without any reference to Bitcoin, which this forum is about). Yet, anybody who is remotely aware of the actions of the CCP including jailing its businessmen, reporters, scientists, doctors for so much as trying to provide genuine criticism, will understand the evil behind this homogenous behemoth that wishes to lord over and bully more and more of the world.

As far as currency devaluation is concerned, it is something that has been done by countries to boost their trade balance in the past. This does not mean that it is somehow a way to enhanced prosperity and growth in a country's economy. The fundamentals of a free market matter. China has cheap labor, cheap capital, cheap land which made it a prime destination for capitalist corporations, leading to unprecedented growth. Apart from the availability of a pliant, billion plus population, what has contributed to the long term growth is the Chinese having zero qualms about stealing IP and copy-pasting,enabled by individual interests in the West.

So as @mu_enrico said, Go away CCP shill, we do not get fooled by the likes of you in the bitcoin world.

[mu_enrico]

It's nice to see @amishmanish also realizes this kind of strange behavior, i.e., shilling Chinese government as if they are so good in governing people, etc. It's rampant on every social media and mainstream media so that more and more people notice this shady act.

Anyway, it should be clear as day that government monetary intervention only works in the short term before the supply demand dynamics catch up and other governments react with tariffs, etc. Remember the don impose heavy tariffs on China and brag about how they "pay." "They pay us million an millions" 

[zanezane]

Good to know that someone else is also seeing this pattern of CCP shills and propagandists on the forum. The communists always have this agenda of "image management" rather than letting a free society and a free press come to the conclusion about the performance and shortcomings of a government.

I think the reason for China's image management BS is because they don't want all the countries become truly their enemy, remember that they still have labor and concentration camps for their Muslim minority so I don't think that they aren't going to slow down with all their lies. Plus there's no possibility that the people of China will ever truly be free, CCP is an example of what happens if the cancer in society was left alone to grow big.

[Hydrogen]

Since china is one the most exporting countries in the world, china devalue the Chinese yuan which made imports expensive and export cheap.

I think corporate profit margins are defined in terms of units sold. A car sold by general motors might have a $5,000 profit margin. This leads the private sector of major export nations to try to devalue their native fiat currency to sell a higher number of units, which looks better on paper in terms of revenue and profits.

Example if general motors has a $5,000 profit margin for every car sold. They can export 100 cars for $500,000 in profit margin. Or if they devalue their currency 20%, they might sell roughly 20% more units. Devaluing fiat currency looks better on paper for the corporate sector who sells more units. But also carries a negative effect of decreasing the purchasing power of consumers who reside in the country.

[Princejebs]

The key word I picked from your post is industrialization.
When a country is equipped with many industrial sectors and produce more than what she is consuming, it doesn't just boost the GDP but it increases the value of that nation and any where around the world, they are always respected.
African solely depend on importation and they also lack industrial plans to boost their economy there by devaluing their currency and increases the rate of inflation in their nations.

[semobo]

Devaluation of currency is a cautious move by the government of a country to decreasingly adjust the value of its currency.

China as a country is dominating the world market and economy because of that bold move.Because of the massive industrialization in china couple with the large productive population, capital intensive production and most importantly good maintenance of the nation resources.

Since china is one the most exporting countries in the world, china devalue the Chinese yuan which made imports expensive and export cheap.

Chinese taste for foreign good reduces, infant industries in china are protected, china has a surplus balance of payments which lead to economic growth and development.

But what is happening in most developing countries especially In Africa is not devaluation of currency but rather depreciation of currency.which is cause by low level of industrialization  Imports based economy.

Devaluation simply means the inflation right or am I understand that in a wrong way?

Very low inflation rate is good for the country and its economic development that is why banks started to print money every year in the past now these banks are just printing money to tackle the economic crisis which is not the right way since it is going to affect the small business more as well as the people's spending power.