EconoChina

A blog on Chinese economy & society

The use of nuclear option

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From Reuters:

The U.S. Treasury Department again declined to label China a currency manipulator in a long-delayed report issued late on Thursday that is likely to provoke Congressional calls for tougher methods with Beijing.

So this was what all that chatter of China’s Treasury holdings as the nuclear option was  about. The blogosphere was rife with snarks of how China would be suicidal by going nuclear. But the use of nuclear weapon has always been in deterrence. NOBODY really goes nuclear, but it helps to have it to scare the other guy into cutting you some slack.

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Written by Cindy Luk

July 8, 2010 at 11:05 pm

Posted in China, Macro

Tagged with , , , ,

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