China Lets Yuan Weaken, Falling Below 7.3 Per Dollar

The video discusses the yuan's position ahead of Trump's tariffs and the potential implications for the Chinese economy. It highlights the challenges faced by China, including low domestic demand and a deflationary spiral, despite stabilization efforts. The Chinese government aims to maintain a 5% GDP target, but achieving this is uncertain. The yuan may experience a gradual fall, influenced by dollar dominance, with significant economic implications.

Discuss the potential consequences of the PBOC allowing the yuan to fall further.

What role does dollar dominance play in the current state of the Chinese economy?